- Trigg Mining (TMG) has entered an option agreement with Tigers Paw Prospecting to divest a non-core gold exploration tenement south of Laverton, WA
- This decision aligns with Trigg's focus on developing its Lake Throssell and Lake Rason Sulphate of Potash projects
- To be granted a six-month option period, Tigers Paw will pay a non-refundable fee of $20,000 to Trigg's subsidiary, K2O Minerals
- To gain a six-month extension, Tigers Paw will need to have spent at least $50,000 on tenement obligations and pay a further $20,000 fee
- If Tigers Paw exercises its option to acquire the tenement, it will pay $100,000 in either cash or shares
- An additional payment of up to $700,000 will be paid once an inferred mineral resource of 200,000 and 500,000 ounces of gold is achieved
- In return, K2O will receive a 1.5 per cent net smelter royalty from production
- Trigg has seen a slight 2.22 per cent dip in its shares and is currently trading for 22 cents
Trigg Mining (TMG) has entered an option agreement with Tigers Paw Prospecting to potentially divest a gold exploration tenement south of Laverton, WA.
Trigg is planning to divest the non-core gold tenement to focus on developing its Lake Throssell and Lake Rason Sulphate of Potash (SOP) projects.
The company initially acquired the tenement through its subsidiary, K2O Minerals, and tested it for SOP.
The proposed sale will reduce the holding costs associated with Trigg's non-core tenements and will potentially be financially beneficial through future cash consideration and production royalties.
Under the agreement, Tigers Paw will pay K2O Minerals a non-refundable exclusive option fee of $20,000 to be granted a six-month option period to acquire the tenement.
Tigers Paw will need to satisfy a minimum of $50,000 for the initial expenditure period (first option period).
Further, the private company will need to pay a non-refundable fee of $20,000 to K2O Minerals before the option period expires to gain a six-month extension. During this time, it will meet the minimum expenditure requires and prepay rent for the following expenditure period.
If Tigers Paw exercises the option, it will pay $100,000 in cash or shares on the settlement date. A further $200,000 payment will need to be paid within seven days of releasing an inferred mineral resource of more than 200,000 ounces of gold or equivalent and when the company reports a mineral resource of more than 500,000 ounces of gold, it will need to pay an additional $200,000 in cash or shares within seven days.
As part of the divestment, K2O Minerals will receive a 1.5 per cent net smelter return (NSR), which will be capped at $1 million.
Trigg has seen a slight 2.22 per cent dip in its shares and is currently trading for 22 cents at 11:17 am AEST.