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- Torian Resources (TNR) has exercised its option to buy Tarmoola Station and the associated mining services business Carhill Contracting
- The company expects the purchase to help fast-track further exploration and mining at its Mt Stirling Gold Project
- Most of Torian’s Mt Stirling Project falls within the bounds of Tarmoola Station’s 172,662-hectare area
- The company is currently considering multiple debt funding options to finance the acquisition
- Torian Resources is up 8.89 per cent and trading at 4.9 cents per share
Torian Resources (TNR) has exercised its option to buy Tarmoola Station and the associated mining services business Carhill Contracting.
Tarmoola Station is a pastoral lease, situated roughly 25 kilometres northwest of Leonora, in Western Australia’s Goldfields region. The station covers an area of approximately 172,662 hectares, half of which is covered by mining or exploration leases.
Tarmoola Station hosts a number of operating and abandoned mines owned by ASX-listed companies. These include Red 5’s (RED) KOTH Operation, and Round Oak Mining’s (SOL) Jaguar Project and operating Bentley underground mine.
Torian Resources expects that its purchase of Tarmoola Station will help to fast-track further exploration and mining at its Mt Stirling Gold Project. This is because the majority of the Mt Stirling Project falls within the bounds of the station.
This includes the project’s Mt Stirling, Stirling Well, numerous historical mine workings, and most of the Diorite prospects and historical mines and workings.
Torian Resources’ Executive Director, Peretz Schapiro, called the purchase of the Tarmoola Station a crucial step towards fast-tracking the exploration and potential mining production at the Mt Stirling Gold Project.
“Our recent site visit has confirmed our convictions that moving ahead with purchasing the station fits very nicely with our long-term strategic goal of solidifying our land holding in the Leonora region as we progress with further exploration of the Mt Stirling Gold Project and potential mining operations,” he said.
“As owners of the pastoral lease, we will be able to reduce our discovery cost per ounce and ensure that the process of obtaining permits for our exploration and potential mining activities is as seamless as possible,” he added.
In addition to the obvious advantages of owning the lease which covers its project, Torian Resources will also benefit from other revenue-generating assets that come with the purchase. These include roughly 1100 head of cattle, a continuous $360,000 per year in carbon credits and Carhill Contracting, a cashflow-positive mining services business.
Tarmoola Station also comes with hard assets like machinery and vehicles, which have been independently valued at just over $1.1 million.
Torian Resources has been able to secure numerous debt funding options and is now considering which is the best to finance the majority of the acquisition.
Torian Resources is up 8.89 per cent, trading at 4.9 cents per share at 11:11 am AEST.
