Intermin Resources Limited (ASX:IRC) has news of a material project divestment pending and has been granted a trading halt by the ASX.
The halt will remain in place until an announcement is released to the market or the start or trading on Tuesday, July 9, 2019, whichever occurs earliest.
Intermin’s shares last traded at 10.5 cents, up from 9.4 cents on Monday.
This week Intermin released details relating to the potential acquisition of the 2.1 million-ounce Coolgardie Gold Project and associated Three Mile Hill processing plant.
Both companies are making progress with formal documentation for the potential $40 million acquisition and securing regulatory approvals required to enter into and complete the transaction.
With this work ongoing, the parties have agreed to extend the exclusivity period by three months with the aim of having formal documentation completed for execution within this period.
Project includes processing plant
Earlier this year Intermin entered an exclusivity deed for the potential sale of the Coolgardie project including the 1.2 million tonnes per annum Three Mile Hill processing plant, which is on care and maintenance.
If the sale proceeds, Intermin will incorporate the Coolgardie project and Three Mile Hill plant in consolidated feasibility work for its gold projects in the Goldfields region.
Feasibility activities proposed for the project include infill, extensional and technical drilling, processing plant engineering studies, approvals work for mine development and additional metallurgical test work.
The Coolgardie project progress comes after Intermin completed a merger with MacPhersons Resources Ltd for which the company is also carrying out work for the consolidated study.
This will include grade control drilling at the Boorara project, which is planned for later this quarter.
The merged entity plans to change its name to Horizon Minerals.