Emmerson and TCMG have expanded their Tennant Creek joint venture (JV) to include the Southern Project Area (SPA), in order to drive aggressive gold exploration, production, and royalty streams.
- The Southern and Northern Project JVs with TCMG will now result in a minimum AUS$10.5m spend on exploration over five years, plus drive advanced studies ahead of mining and processing that are sole funded by TCMG
- This new strategic alliance with TCMG includes:
- Exploration earn-in and JV agreements (managed by Emmerson) whereby TCMG provides AUS$5.0m of funding to earn a 75% interest in the SPA.
- A small mines joint venture covering the SPA with Emmerson to receive:
- Free carried, 6% gold production royalty from all small mines.
- A guaranteed 6% of a minimum 30 000 oz gold production royalty or cash payment of any shortfall.
- A major mines JV from projects with the discovery of >250 000 oz gold with Emmerson to receive an immediate 40% contributing share
- TCMG feasibility studies and plans for a central mill in Tennant Creek to be finalised before year-end.
- Emmerson retains 100% ownership of the Edna Beryl and Jasper Hills Project Areas
Emmerson Managing Director Mr Rob Bills commented:
“This new Joint Venture over the Southern Project Area with the Tennant Consolidated Mining Group (TCMG) is a logical extension and consolidation of our alliance on the Northern Project Area. TCMG have demonstrated a track record of meeting their JV commitments and continue to be a valued partner that are working with Emmerson to rapidly recommence gold production and development of the Tennant Creek Mineral Field.
“TCMG bring access to capital, mining and production expertise which compliments Emmerson’s strong exploration and discovery track record.
“This new exploration and mining JV over the SPA has clear hurdles, including a minimum production of 30 000 oz of gold, in addition to that required under the Northern Project Area Agreement. Such that both require a minimum of 60 000 oz within their respective five-year periods. The exploration earn-in and JV will combine Emmerson’s experience and technical expertise with significant funding to discover new deposits and extend existing deposits.
“The inclusion of the major mines JV and broadening the reach of our partnership to a 20 000 km2 area of mutual interest aligns both parties to the longer-term future of this strategic alliance.
“In parallel, TCMG has consolidated several other projects in the Tennant Creek region and intends to unlock value through building a large, central, modern processing facility. The location and size of this new facility is the subject of current studies. Emmerson is encouraged by the diligent, long-term approach being taken by TCMG to realising full value from one of Australia’s premier goldfields.”
Tennant Consolidated Mining Group Managing Director Peter Main commented:
TCMG's advisory group TransAsia Private Capital is best known for its private debt solutions including short tenor trade finance through mid to longer term and project loans.
“Emmerson has a strategic land package in the Tennant Creek Mineral Field with clear production potential, which aligns with our consolidation strategy and establishing a modern processing facility to unlock these stranded assets.
TCMG is working with Emmerson to establish a pipeline of mining projects ready for production.”
Read the article online at: https://www.globalminingreview.com/mining/03062021/emmerson-and-tcmg-expand-tennant-creek-joint-venture/
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