Intermin Resources Ltd (ASX:IRC) has reached an agreement with Saracen Mineral Holdings Ltd (ASX:SAR) to divest its 10% interest in the Lehmans Gold Joint Venture in Western Australia.
In consideration, Intermin will receive $2.5 million cash, of which $250,000 has been received and a 2.5% net smelter royalty.
Intermin’s managing director Jon Price said: “Holding a minority interest in a project in the northern goldfields just didn’t make sense for Intermin and would be a distraction from the company’s core focus of building a gold business in the Kalgoorlie region.
“This will enable Saracen to explore and develop the projects unencumbered and further strengthen Intermin’s financial position as it continues with its gold exploration and mine development growth plans.”
READ: Intermin Resources updates Teal gold resource, regional drilling ongoing
The divestment package comprises 14 tenements to the north of Saracen’s Thunderbox operation near Leinster in the northern goldfields of Western Australia.
The smelter royalty is payable by Saracen once it has produced 42,000 ounces of gold from the transaction tenements, and ends once 100,000 ounces has been produced.
Fully funded drill program continues
A fully funded 55,000-metre resource extension and new discovery drilling program continues.
During the September quarter, 20,336 metres were drilled at the Anthill, Binduli and Blister Dam projects.
Drilling at the Teal Gold Project area was successful resulting in a new discovery and recent resource upgrade.
During the current quarter, drilling will continue at Binduli and Blister Dam and assay results from completed drilling are expected.