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- Tombola Gold (TBA) signs a binding term sheet to acquire 100 per cent of the Lorena processing facility in Queensland
- The Lorena Facility is a gold carbon-in-leach processing facility with the capacity to treat copper-bearing ore and TBA intends to recommission the plant and expand the tailings facility
- Consideration for the acquisition is 50 million Tombola shares at an implied price of six cents each for a total of $3 million and a further $5 million in cash
- Tombola expects the acquisition will enable it to undertake studies to optimise gold production which is expected to begin in Q4
- Tombola ends the day five per cent in the red with shares trading at 5 cents
Tombola Gold (TBA) has signed a binding term sheet to acquire 100 per cent of the Lorena processing facility.
The Lorena Facility lies 13 kilometres from Cloncurry in Queensland and 30 kilometres from Tombola’s flagship Mt Freda Gold Mine.
It was commissioned in 2017 and continued operations until 2021 when it was placed on care and maintenance pending a desire to sell.
The Lorena Facility is primarily a gold carbon-in-leach processing facility with the capacity to treat copper-bearing ore and over the coming months, Tombola intends to recommission the plant and expand the tailings facility.
Consideration for the acquisition is 50 million Tombola shares at an implied price of 6 cents each for a total of $3 million and $5 million in cash. Of the cash payment, $1 million will be paid upfront and the remainder will be paid in six to nine months.
The acquisition is subject to due diligence activities and Tombola shareholder approval.
Tombola expects the acquisition will enable it to undertake studies to optimise gold production which is expected to begin in Q4.
“The acquisition of the Lorena processing facility delivers a step change for us in our targeted gold production,” Managing Director Byron Miles said.
“Importantly, it enables Tombola to commence planning to determine gold production rates as well as gold-optimisation planning studies.
“The company aspires to significantly increase its production potential in terms of expected throughput and recovery rate, once both the original vat leaching and the Lorena facility are on stream in 2023.”
Tombola has ended the day 1.96 per cent in the red with shares trading at 5 cents.
