Gold producer Tanami Gold NL (TAM) [“TGNL”] is pleased to announce that it has agreed to acquire a 100% interest in the Groundrush Gold Project in the Tanami Arunta Province of the Northern Territory from Newmont Asia Pacific [“Newmont”] for A$22 million.
The acquisition is part of a broader transaction with its exploration alliance partner ABM Resources NL [“ABM”] encompassing an extensive exploration portfolio being divested by Newmont in the region.
Under the agreement, TGNL and ABM are acquiring the Tanami and Barrow Creek Non Core Divestment Packages [“Transaction”] in the Tanami Arunta Province of the Northern Territory for a total consideration of A$32.775 million.
TGNL’s share of the Transaction is A$22 million for 100% of the Groundrush Gold Project, for which it has secured financial backing from its largest shareholder, Allied Properties Resources Limited to complete the Transaction. The commercial terms of the Transaction have been agreed by all parties with a settlement date scheduled for 30 March 2010 or earlier, subject to completion of relevant consents and Newmont board approval.
The Groundrush Gold Project includes a JORC Code compliant Resource of 516,000 ounces, a 1.25 million tonne per annum (Mtpa) treatment plant, all associated support infrastructure including office, workshops, airstrip, 140 person accommodation village, borefield and communication facilities, as well as an extensive package of Mineral Leases [21 Leases with a total area of 125km2] and Exploration Licences [16 Licences with a total area of 1,945km2]. The treatment plant is currently non operational and will require partial refurbishment to return to full operational mode.
With the addition of the Groundrush Gold Project assets and tenement package, the Company is aiming to lift production from its combined Tanami operations to in excess of 200,000 ounces per annum within a two year period.