Calidus Resources has acquired the remaining 30% stake in key tenements located at the Warrawoona gold project in the Pilbara region of Western Australia.
The company purchased the properties, which includes eight exploration tenements and three application areas, from Novo Resources’ subsidiaries Beatons Creek and Grant’s Hill Gold.
Calidus will pay a 1% Net Smelter Return Royalty across the tenements as consideration for the purchase.
Calidus Resources managing director Dave Reeves said: “The purchase of the 30% interest in these tenements not only consolidates ownership in these key exploration and infrastructure tenements but also assists greatly in funding and operational administration by reducing cross ownership and guarantee structures.
“We are well on track to start main construction activities at Warrawoona this quarter, with final operating approvals expected shortly.”
Separately, Calidus paid A$5m ($3.8m) to Novo for a deal that increases its ownership in the Blue Spec project to 25%.
Reeves added: “In addition, the work we are completing on the high grade Blue Spec Scoping Study has given us the confidence to secure 25% of the project via a $5m payment, we look forward to announcing the results of the Scoping Study this quarter.”
Calidus describes Warrawoona as one of the highest margin and significant undeveloped gold projects in Australia.
A positive feasibility study completed last year outlines a high-margin gold operation with average gold production of 90,000oz/pa at A$1,290/oz AISC over an initial eight-year mine life.