Emmerson Resources Limited (ASX:ERM) has reached an agreement with Evolution Mining Ltd (ASX:EVN) to restructure the Tennant Creek Mineral Field (TCMF) joint venture.
The mutually beneficial proposed new ownership structure reflects the differing size and corporate objectives of the companies.
For Emmerson, it unlocks greater near-term value for shareholders and provides a better strategic fit in terms of delivering high margin projects across a shorter time horizon.
WATCH: Restructure of joint venture deal the logical next step for Emmerson Resources
Under the restructure, Emmerson will retain a 100% (instead of 35%) of all the gold dominant assets, prospects and associated exploration ground.
Emmerson will also retain a 100% interest in the Tribute Mining Agreement at Edna Beryl.
Evolution will take a 100% holding in the tenements (or parts of them) that contain the Gecko, Goanna, and Orlando copper-gold prospects, constituting 6% of the TCMF land position.
These prospects are predominantly copper-rich.
Assets are now better aligned with each company
Rob Bills, managing director, said: “This proposed restructure better aligns the assets with the respective companies.
“It provides Emmerson shareholders with near term, high margin gold assets and exploration ground that can be more easily developed within the constraints of the Emmerson balance sheet.”
Evolution remains a significant shareholder of Emmerson
The chief geologist from Evolution agreed that a subdivision of the ground holding as proposed will allow both parties to take a 100% interest in their preferred prospects.
He went on to express that it was a smart outcome for both parties and that Evolution remains a significant shareholder of Emmerson.