White Rock signs a non-binding, non-exclusive Term Sheet with the objective
of entering into a joint venture with Koala Metals to advance the Mt
Carrington gold and silver project through the regulatory approvals process
and ultimately into production.

The Term Sheet contemplates Koala Metals funding the advancement of the
Mt Carrington gold and silver project through to Definitive Feasibility Study
(DFS), completion and submission of the Environmental Impact Statement
(EIS), concurrent with community consultation, achieving government
Development Consent (Final Investment Decision – FID) and so placing the
project and its partners in a position to then fund, build and commission the
mine under the joint venture agreement.

On completion of the DFS and EIS, and with a budget of ~A$5M, Koala Metals
would earn 30% of the Mt Carrington asset – Stage 1.

On achieving FID, Koala Metals would advance to 51%. A further A$1.5M is
budgeted during this stage for extension drilling and upside studies – Stage 2.

Koala Metals can exercise an option and move from 51% to 70% by paying
White Rock A$12.5M subject to the gold price exceeding AUD $2,600/oz in the
preceding 6 months – Stage 3.

Development of the project into production would occur along JV ownership
lines – Stage 4.

Koala Metals will be responsible for keeping the tenements in good standing
and funding all of the site care and maintenance costs until Stage 2 is

White Rock will receive 3 non-refundable staged cash payments totalling $1M
as the project advances through the first two stages.

CLICK HERE to read the full news release form WRM.AX

2 thoughts on “White Rock Minerals (WRM.AX): Term Sheet signed to progress the Mt Carrington gold and silver Project

  1. John says:

    I was initially disappointed with this as I see this small mine as a means to fund exploration, add credibility to management to run a mine and as an ideal fallback for SP if Alaska fizzles out.

    Saying that, perhaps they do not have the resources to both run a mine and explore on the other side of the planet and so outsource some of the work?

    Need to digest this more but this IMHO makes them more a hail Mary play as the potential cash they could have made has been halved.

    Happy to be wrong 🙂

  2. Dominic Lee says:

    the real gold is in Alaska, the NSW asset is just gravy to keep the train running, their silver/zinc resource is not valued. I hope the three staged cash payments are not part of Koala’s compulsory exploration spend. The Mt Carrington project also had in my view substantial royalty cost, 40,000 equivalent on a 200k resource is huge chunk.

    We can now focus on advancing Alaska !!! I am not surprised if we hit multiple standalone reserves. Let me know your views

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