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