- White Rock Minerals (WRM) and Koala Metals have signed a non-binding term sheet with the aim to form a joint venture to advance the Mt Carrington Project
- Mt Carrington is located in New South Wales and has a mineral resource of 352,000 ounces of gold and 23 million ounces of silver
- Under the agreement, Koala will have the option to earn up to a 70 per cent interest in the project by paying White Rock $13.5 million
- Koala will also spend around $5 million completing a definitive feasibility study and environmental impact statement and a further $1.5 million on drilling and studies
- Once these have been completed and a final investment decision has been reached, Mt Carrington can move to the building and commissioning phase
- White Rock is trading a slight 0.89 per cent lower for 55.5 cents
White Rock Minerals (WRM) has signed a non-binding term sheet with Koala Metals to advance the Mt Carrington Project in New South Wales.
The companies have entered the agreement with the objective of forming a joint venture.
Koala Metals is an Australian private company targeting gold and silver exploration opportunities throughout the country.
“The Koala Metals management team have extensive industry experience spanning project funding, geology, processing plant design and construction and mine operations, and we believe possess the key requirements to advance and develop the Mt Carrington project,” White Rock CEO and Managing Director Matt Gill said.
The Mt Carrington Project is a gold-silver epithermal project in the southern New England Fold Belt of northern New South Wales. The project has an ore reserve of 4.1 million tonnes at 1.3g/t gold for 174,000 ounces within an overall mineral resource of 352,000 ounces of gold. The project also has a silver mineral resource estimate of 23 million ounces.
Under the term sheet, Koala Metals may fund the development of the project through to a definitive feasibility study (DFS), completion of an environmental impact statement (EIS) and reaching a final investment decision (FID). Once these milestones have been ticked off, the companies will be in a position to fund, build and commission the project.
Koala is set to earn a 30 per cent interest in the project by spending around $5 million on completing DFS and EIS.
The second stage includes achieving a FID which will advance Koala to a 51 per cent interest. A further $1.5 million is budgeted for this stage which will be put towards extension drilling and studies.
As the project advances through the first two stages, White Rock will receive three non-refundable staged cash payments totalling $1 million.
Koala will be responsible for keeping the tenements in ‘good standing’ and funding all of the site care and maintenance costs until stage two is complete.
Following this stage, Koala Metals can exercise the option to advance its interest to 70 per cent by paying White Rock $12.5 million subject to the gold price exceeding $2600 per ounce.
“With Koala Metals leading the development of Mt Carrington, White Rock will be able to focus on a second stage of its strategy that investigates the enhancement of shareholder value from these Alaskan assets,” Matt Gill said.
White Rock’s Alaskan projects include the Red Mountain Project and the nearby Last Chance Intrusion-Related Gold System (IRGS) Project.
White Rock is trading a slight 0.89 per cent lower for 55.5 cents at 12:14 pm AEDT.