Cadence Minerals Plc’s (LON:KDNC) investee company Macarthur Minerals Limited (CVE:MMS) has signed an agreement with ASX-listed Artemis Resources which could see the latter earn-in up to an 80% interest in two of Macarthur’s tenements in the Pilbara region of Western Australia.
The two tenements cover a total of 265 sq. km, with Artemis specifically interested in the conglomerate gold potential.
Artemis is already active in the area having recently entered into an earn-in and joint venture with Nove Resources for gold.
Artemis – which is paying A$60,000 up front for the earn-in option – can earn up to an initial 65% in the tenements by spending A$1mln on them or by paying Macarthur a further A$1mln less any expenses within three years.
It can then earn another 15% by paying Macarthur A$1mln either in shares or cash at its own election.
‘Positive move towards commercialisation’
“With the increasing interest for a potential "Witwatersrand" style gold mineralised system within the Pilbara region of Western Australia, the agreement between Artemis and Macarthur is a very positive move towards the exploration and development of some highly prospective ground,” said Cadence boss Kiran Morzaria.
“Artemis along with Novo Resources have been developing Purdy's Reward Gold Prospect, which to date has yielded some exceptional results.
It is thought the conglomerate sequence that the gold mineralisation is hosted in, is analogous to the Witwatersrand Basin in South Africa which has produced about one third of all the gold produced on earth"
“Although it is early days in the development of this regional exploration target, it is encouraging that Artemis has decided earn into some of Macarthur's license applications.”
Cadence has a 15.7% equity stake in Macarthur.
Cadence shares were down 1.3% to 0.37p in late afternoon trade.