Emmerson Resources Ltd (ASX:ERM) is in a trading halt ahead of an announcement relating to the Tennant Creek Gold-Copper Project in the Northern Territory.
The trading halt will remain in place until the beginning of normal ASX trading on Tuesday, April 28, 2020, or when an announcement is released to the market, whichever occurs earliest.
Emmerson, whose shares last traded at 7.3 cents, continues to progress the goal of realising a low-risk royalty stream from gold assets at Tennant Creek.
Mining of further deposits
A Letter of Intent has been signed between ERM's strategic alliance partner Territory Resources Ltd and Blue Cap Mining for the development and mining of further deposits in the Tennant Creek field.
Blue Cap has experience in small gold projects, including Red Dog and Penny’s Find, and can fund the working capital required to advance the development and mining of multiple gold projects in the southern project area (SPA) of the Emmerson and Territory joint venture.
Emmerson managing director Rob Bills said: “The Letter of Intent between Territory Resources and Blue Cap Mining marks a very positive step forward for our emerging gold royalty business in Tennant Creek.
“Blue Cap is an experienced and highly regarded operator, bringing specialist project and mining skills to fast-track the development of multiple gold projects in the Tennant Creek Mineral Field.
“It has the ability to fund its working capital across these projects and has a demonstrated track record of successful delivery.”
Emmerson formed a strategic alliance with Territory in 2018, with Territory to establish a central mill in Tennant Creek to support processing from Emmerson’s small gold mines and other third-party feed.