Exploration and development company Matsa Resources has granted an option to global mining company AngloGold Ashanti to acquire a majority stake in its Lake Carey gold project in Western Australia (WA) for a cash consideration of A$101m ($70.4m), contingent on certain conditions.
The Lake Carey Gold Project is estimated to contain mineral resources of 949,000oz at 2.5 grams per tonne (g/t) of gold and the mineral reserve estimate is 104,000oz at 2.4g/t of gold.
The consideration for the acquisition is structured as cash payments including an A$8m option fee and a potential A$73m option exercise fee, calculated based on the gold price at the time of exercise.
Additionally, Matsa may receive up to A$20m in discovery royalties for new resources discovered on the tenements sold.
The option granted to AngloGold Ashanti can be exercised within 18 months upon meeting specific conditions.
Matsa retains the Devon Pit Gold Mine, the Fortitude North Project and the Red October Accommodation Village, as well as related tenements under the tenement option agreement.
The company will utilise the funds from this transaction to advance these remaining assets, as well as for corporate activities and working capital.
The transaction is contingent upon Matsa securing all necessary approvals, obtaining lender consent and addressing right of first refusal and third-party consents for specific tenements.
Matsa executive chairman Paul Poli said: “This transaction is the culmination of negotiations over the past 12 months with AngloGold Ashanti. To attribute a value of approximately A$101m to the Lake Carey Gold Project speaks volumes for the exploration potential of this project.
“Not only that, Matsa retains the highly valuable, near-term production Devon project, Red October Accommodation Village and what I consider to be a very exciting exploration project in Fortitude North where recent drilling highlighted its potential.”
In March 2024, Matsa Resources signed a binding heads of agreement with BML Ventures for mining the Devon Pit Gold Mine. This agreement provides BML with exclusive rights to conduct open-pit mining at the location, with profits to be equally divided between the two companies.
