Intermin Resources has entered an A$40m ($28.3m) agreement for the potential acquisition of Focus Minerals’ 2.1Moz Coolgardie Gold Project in Western Australia.
Covering 235km² of greenstone belt 45km west of Kalgoorlie-Boulder, the Coolgardie Gold Project includes the 1.2Mtpa Three Mile Hill processing plant that is currently on care and maintenance.
Intermin is currently in the process of completing a merger with MacPhersons Resources, which approved Intermin’s entry into the exclusivity deed with Focus Minerals.
Intermin Resources managing director Jon Price said: “The potential consolidation of the Intermin and MacPhersons assets with the Coolgardie Gold Project would be a natural fit, delivering additional high grade open cut and underground ore sources to the base load Boorara Project and Intermin’s satellite projects, as well as a conventional 1.2Mtpa processing facility.
“We look forward to working with MacPhersons and Focus on progressing these transactions and embarking on an exciting new chapter for all shareholders and the regional communities in which we operate.”
During the five-month exclusivity period, the parties have the opportunity to finalise formal transaction documentation and secure necessary approvals for the potential acquisition of the Coolgardie Gold Project.
As part of the exclusivity deed, the parties will use their reasonable endeavours to negotiate the formal documents for the transaction on terms consistent with those set out in the schedule.
After completion of respective due diligence investigations, the exclusivity period will allow Focus and Intermin to negotiate and seek to finalise formal binding written agreements for the proposed transaction.
The companies will also be able to secure all necessary approvals to enter and complete the deal.
The transaction remains subject to the negotiation of, and entry into, the formal documentation and the receipt of necessary approvals and there is no assurance that it will proceed.