Matsa and Linden Gold agree JV for Australian gold project

The key terms of the JVA include:

• Linden will be granted a 50% profit-share interest in the Devon Pit and be appointed JV Manager.
• Linden to pay Matsa a US$4 million upfront prepayment, which can be only recouped by Linden if the Devon mine makes a profit.
• Matsa has already received US$100 000 as a deposit as per the previous non-binding indicative term sheet for a 50/50 development and profit-sharing joint venture for the Devon Pit executed on the 7 October 2022.
• The remaining US$3.9 million will be receivable from Linden within 4 weeks of the JVA being signed, being no later than 9 December 2022.
• Matsa will be free carried by Linden and fund Matsa’s share of feasibility, development, finance, working capital and all other mining costs, with Matsa’s share of these costs only recouped from the Devon Pit’s profits.
• Matsa is entitled to 50% of the profit once the US$4 million and free-carried costs have been repaid to Linden.
• Matsa is not obligated to repay the US$4 million or carried costs, these costs are only repaid to Linden if the Devon Pit makes a profit.
• Linden is required to deliver certain development milestones:
  • Non-binding commitment from a toll mill or ore purchaser by 31 March 2023.
  • Delivery of a definitive feasibility study by 31 August 2023.
  • Proof of funding by 30 September 2023.
  • Commencement of mining before 30 June 2024.
• If these milestones are not met, Matsa has the right to terminate the JVA (except in certain extension scenarios including suppressed gold prices, government permitting/approvals and other items outside Linden’s control).
• A JV committee will be formed with two representatives each from Linden and Matsa.

In June 2021, the results of Matsa’s mining studies for the Devon Pit indicated a positive surplus of US$40 million under a Matsa owned and operated processing plant scenario. Linden has advised that they have completed additional scoping work on a pit restart including diamond infill drilling and further pit optimisations. Linden will complete a definitive feasibility study on the Devon Pit restart with resource infill and expansion drilling to commence imminently, subject to approval from the JV committee. Matsa looks forward to updating the market as results come to hand.

Read the article online at: https://www.globalminingreview.com/mining/15112022/matsa-and-linden-gold-agree-jv-for-australian-gold-project/