News and Announcements
Settlement of Matsa’s (ASX: MAT) Red October Gold Project
- Published March 27, 2018 12:00AM UTC
- Publisher Wholesale Investor
- Categories Company Updates
KEY TAKEAWAYS:
- Matsa has finalised and settled the acquisition of the Red October Gold Mine and associated infrastructure with Saracen
- The current resource at the Red October Gold Mine is 99,000 oz. of Au at 6.9 g/t including 85,000 0z. of Au at 13.5 g/t
- Settlement included 44km2 of granted mining tenements, a modern 68 person camp with full accommodation and administration facilities, workshops and all supporting mine infrastructure, including pumps and ventilation systems and haul roads
- Settlement of an additional 20km2 representing the balance of the proposed acquisition is expected to occur in due course
- Mine planning and resource definition work is already underway to immediately assess the potential to recommence mining at Red October
- Exploration programmes being developed to identify prospective areas that can add to the current known resource including the Treasure Island and Causeway prospects
Matsa Resources Limited (“Matsa” or “the Company” ASX: MAT) is pleased to advise that it has today settled the acquisition of the Red October Gold Mine and associated infrastructure with Saracen Mineral Holdings Limited (“Saracen”; ASX: SAR). On 26th September 2017 Matsa announced it had entered into an Asset Sale and Purchase Agreement (“ASPA”) with Saracen to acquire the Red October Gold Project for a combination of cash and shares to the deemed value of $2 million (MAT announcement to ASX 26th September 2017).
The acquisition was subject to a number of conditions which have now been met and Matsa has issued 4,545,000 fully paid ordinary shares at a deemed price of $0.22 to Saracen as part consideration of the acquisition. A deferred and final consideration amount of $400,000 will be due and payable to Saracen on 25th June 2018.
Three tenements (Capella Tenements) that were part of the original ASPA have not been able to be transferred at this time and as a result Matsa will withhold $450,000 until this matter can be resolved. These Capella tenements are at the southern end of the Red October project area and will have no impact on Matsa’s operations.
Matsa’s Executive Chairman Mr Paul Poli said “The acquisition of the Red October Gold Mine has now been completed and we are truly excited about our prospects at Red October. We welcome Saracen to our share register and thank them for their professionalism during our journey.”
Mr Poli added “We have already gotten on with the job of assessing the potential to recommence mining at Red October and expect to give shareholders an update on how near to recommencement of production we could be soon.”
About Matsa Resources Ltd (ASX: MAT)
Matsa is an ASX listed explorer/developer who has become a gold producer following the acquisition and development of the Fortitude gold mine. Fortitude forms part of the Lake Carey gold project south of Laverton. Matsa has a pipeline of quality projects within Australia and central Thailand. Matsa has recently acquired the Red October Gold mine near Lake Carey which boosts the mining potential within the area.