Emmerson Resources Ltd (ASX:ERM) has sold the Edna Beryl Mining Company (EBMC) to strategic partner Territory Resources Ltd.
Territory is an experienced mining and processing operator and the Edna Beryl Mine will now become an important early producer in the Territory mining schedule.
Earlier this year, Emmerson outlined a strategic alliance with Territory to build a central processing hub in Tennant Creek to support the milling and processing from Emmerson’s small gold mines and other third-party feed.
READ: Emmerson Resources forms transformational alliance, raises cash at 56% premium
Emmerson’s managing director Rob Bills said: “The purchase of the EBMC by Territory is a fantastic outcome for all concerned as it provides a quick route to the mining of high-grade gold.
“Establishing for the first time, commercial production from the Edna Beryl Mine via the refurbished Warrego Mill or third-party processing routes.
“We thank the NT Government for the timely approval of our recent Mine Management Plan, which provides for additional dewatering capacity from the underground workings.
“This is instrumental in extending the underground development and establishing an exploration drive - providing an effective platform to drill test the multiple, subparallel ironstones…some of which have yielded extremely high-grade gold from surface drilling.
“Also noting that high-density fan drilling from underground was instrumental to discovery in many of the famous historic mines across the Tennant Creek Field.
Deal de-risks future for Emmerson shareholders
“This development and exploration strategy significantly de-risks the future for Emmerson shareholders, in generating early cash flow and providing a better understanding of the orebody.
“Furthermore, the recently announced Mining Joint Venture with Territory is aimed at scaling this strategy across Emmerson’s other small mines within the Southern Project Area, whereby Emmerson retains either a profit share or gold royalty.
“Emmerson will continue to apply its expertise as exploration manager across the entire Tennant Creek Mineral Field, including the 100% owned Northern Project Area which hosts the Edna Beryl Mine and the recent discovery at Mauretania.”