Matsa Resources Limited (ASX: MAT) has executed a Tenement Option Agreement with global mining company AngloGold Ashanti Australia Limited.
AngloGold Ashanti has the option to acquire the majority of Matsa’s Lake Carey Gold Project near Laverton Western Australia, for A$101M (at a gold price of A$4,500) (subject to the satisfaction of certain conditions precedent). Importantly, Matsa retains the near-term production Devon Pit Gold Mine, the Fortitude North Project, and the Red October Accommodation Village, as well as associated tenements.
Completion of this transaction allows Matsa to focus on the commencement of mining at Devon and exploration on Fortitude North where recent high grade results illustrated the exploration potential.
Matsa Executive Chairman Mr Paul Poli commented: “This transaction is the culmination of negotiations over the past 12 months with AngloGold Ashanti and I am thrilled with this outcome. 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. This transaction has been a long time in the making. I would like to thank AngloGold Ashanti and their team for the way in which the negotiations were conducted. To have a party of the ilk of AngloGold Ashanti speaks to the true potential value of Matsa’s assets and has attributed a ‘see through’ value of in excess of A$85 per resource ounce based on the current market gold price. I believe shareholders can now have a better understanding of the value of Matsa and what that now means for them and into the future.”
To read more about this, please visit www.matsa.com.au
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