An historic former gold mine near Mount Isa has been sold as part of a deal that will see the backdoor listing of a new mining entity.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Mineral and silica sands miner Diatreme told the ASX Tuesday it had entered an agreement with Berkut Minerals to transfer more than 320 square kilometres of tenements including the historic Tick Hill gold operation.
Tick Hill, 110km south-east of Mount Isa, was once one of Australia’s highest grade and most profitable gold mines but has largely been unexplored for two decades.
Mining ceased in 1995 to a depth of 235m after 513,333 ounces of gold and 705,000 tonnes of ore was produced at a recovered grade of 22.6 grams a tonne gold.
Diatreme bought the mine in 2015 and resumed exploration in 2016 under a Diatreme Joint Venture with Superior Resources but it 2018 it was announced they would sell out to a gold resources float called Carnaby Resources.
Berkut has now entered a series of interdependent agreements where it will first acquire Carnaby and then execute a heads of agreement with Diatreme to buy out 100% of the legal assets and 75% of the beneficial assets.
There will be another agreement between Berkut and Superior to obtain the remaining 25% of the beneficial assets.
Berkut will be renamed Carnaby Resources following the purchase worth $562,000 in fully paid ordinary shares.
Diatreme CEO Neil McIntyre said the deal gave itshareholders exposure to Berkut's gold assets while continuing to focus on its heavy minerals and silica sands projects.
"Tick Hill is historically one of Australia's richest gold mines and with Berkut's experience in gold exploration along with rising gold prices offers great potential to deliver value for the shareholders of both companies," Mr McIntyre said.
Berkut managing director Neil Inwood said the gold sector was enjoying rising investor interest due to high prices and solid consumption growth in Asia.
"There is a well-defined exploration plan for Tick Hill and the broader area which is being consolidated for the first time in 20 years.," Mr Inwood said.
"The company is in a strong funding position to pursue a focused and aggressive exploration program."
While you are here subscribe to our weekly email to your inbox at 6am every Friday
Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
