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- Thomson Resources (TMZ) could earn up to 70 per cent of the Mt Carrington gold and silver project, through a new earn-in deal with ASX-lister White Rock Minerals (WRM)
- Under the term sheet, Thomson has 60 days to complete its due diligence at the project
- Signing the term sheet means Thomson is committed to stage one of the agreement and acquires 30 per cent of the project
- This stage includes a minimum spend of $500,000 in the first six months and progressive cash payments of $700,000 over 18 months
- The company will then decide it will proceed to stage two, remain with a 30 per cent interest or exit the project
- On the market today, Thomson is up 9.68 per cent and is trading at 17 cents per share, while White Rock is up 4.27 per cent, trading at 61 cents per share
Thomson Resources (TMZ) could earn up to 70 per cent of the Mt Carrington gold and silver project, through a new earn-in deal with ASX-lister White Rock Minerals (WRM).
The companies have signed a binding and exclusive term sheet for a three stage earn-in, which includes an option to form joint venture.
Under the term sheet, Thomson has 60 days to complete its due diligence at the Mt Carrington project and finalise a definitive agreement to replace the term sheet.
The Mt Carrington project is located 5 kilometres from the township of Drake in northern NSW, approximately four hours by car southwest of Brisbane.
Notably, the project is located near Thomson’s Webbs, Conrad and Hortons projects, located in the New England region of north-east NSW.
Despite how close these projects are to one another, they have never before been owned by one company and, therefore, according to Thomson remained undeveloped.
The term sheet will allow the companies to gather the studies and approvals needed to fund, build and commission the project. These include a Definitive Feasibility Study (DFS), Environmental Impact Statement (EIS) and Final Investment Decision (FID).
Three stage earn-in
Signing the term sheet means Thomson is committed to stage one of the earn-in, through which it will acquire 30 per cent of the project. This stage includes a minimum spend of $500,000 in the first six months and progressive cash payments of $700,000 over 18 months.
The money spent on stage one will go towards the completion of a DFS and prepare and submit an EIS.
The company will then decide it will proceed to stage two, remain with a 30 per cent interest or exit the project.
Stage two, for 51 per cent of the project, Thomson will need to obtain all the necessary approvals for the EIS and obtain an FID.
And the final stage to earn the 70 per cent interest, Thomson will need to pay White Rock $12.5 million.
Once the earn-in is complete, at which ever stage, a joint venture will be formed for the future development and operations of the project.
“Mt Carrington is well advanced down the feasibility study path, and with due diligence completed at both Webbs and Conrad, there is an ability to bring together the different resources in these silver and gold deposits to significantly strengthen the economic viability of all the projects,” Thomson Executive Chairman David Williams said.
“The negotiations with White Rock have been very positive and constructive which point to a productive JV going forward. We look forward to working with the White Rock team and progressing the Mt Carrington Project,” he added.
White Rock CEO and Managing Director Matt Gill is also pleased to partner with Thomson.
“They have a clear strategy to unlock the potential from the consolidation of various gold and silver assets in and around our advanced Mt Carrington project in NSW,” he said.
“Securing a quality partner to advance Mt Carrington is a key and timely step in White Rock’s strategy to unlock the value in all of our projects,” he added.
On the market today, Thomson is up 9.68 per cent and is trading at 17 cents per share, while White Rock is up 4.27 per cent, trading at 61 cents per share at 12:30 pm AEDT.
