Greatland Gold PLC (AIM:GGP, OTC:GRLGF) has inked an agreement with Flynn Gold which will have the option to acquire the company’s Tasmanian tenements, Firetower and Warrentinna.
The company, in a statement, detailed the agreement which comprises a A$100,000 option fee which could lead to a further A$1mln of deferred proceeds if it is exercised. The company will also receive a 1% net smelter royalty on any future production from the tenements.
"We are pleased to enter this agreement with Flynn Gold in respect of the Firetower and Warrentinna tenements,” said managing director Shaun Day.
“Flynn Gold is a local Tasmanian operator seeking to accelerate the advancement of these exploration projects."
Day added: “The transactions allow Greatland to focus on its core projects in Western Australia.
“Greatland receives both upfront value and maintains a future economic interest in these projects, providing ongoing exposure to upside outcomes while delivering an excellent result for Greatland shareholders."
The company noted that Flynn may opt to satisfy the option fee and/or transaction with its shares.