Intermin Resources May Add Coolgardie Gold Project to Portfolio

Intermin Resources (ASX:IRC) has signed an exclusivity deed with Focus Minerals (ASX:FML) to potentially acquire the Coolgardie gold project in Western Australia.

The deal would entail Intermin paying Focus a AU$300,000 exclusivity deposit within seven days, followed by a five-month exclusivity period for the two companies to negotiate, finalize and secure necessary documents and approvals. Through a proposed deferred payment structure, the acquisition would total AU$40 million in cash and shares over a 3.5-year period.

Coolgardie has a mineral resource estimate of 27.3 million tonnes grading 2.4 grams per tonne gold for 2.1 million ounces, and its acquisition would also include the Three Mile Hill processing plant; the 1.2-million-tonne-per-year (Mtpa) plant is currently on care and maintenance.

The move from Intermin was greenlit by MacPhersons Resources (ASX:MRP), which agreed to merge with Intermin in December 2018. MacPhersons’ two main assets are its Boorara gold project and its Nimbus project, both located near Kalgoorlie.

“The potential consolidation of the Intermin and MacPhersons assets with the Coolgardie gold project would be a natural fit, delivering additional high grade open cut and underground ore sources to the base load Boorara project and Intermin’s satellite projects, as well as a conventional 1.2Mtpa processing facility,” Intermin Managing Director Jon Price said in a statement.

“We look forward to working with MacPhersons and Focus on progressing these transactions and embarking on an exciting new chapter for all shareholders and the regional communities in which we operate,” he continued.

Also commenting on the freshly signed deed was Focus CEO Zhaoya Wang, who highlighted that the acquisition will allow the company to continue progress on its Laverton gold project.

“The Coolgardie project complements the existing projects of Intermin and, potentially, MacPhersons, all of which are proximal to the Three Mile Hill processing facility to be acquired by Intermin,” said Wang.

The Laverton gold project is one of Focus’ primary assets, alongside Coolgardie and its Nepean nickel project. Currently in the exploration and development stage, the company completed over 15,000 meters of drilling at the project during the September 2018 quarter.

Intermin’s share price was 8.33 percent higher at the end of trading on Monday (February 11), closing on the ASX at AU$0.13. Meanwhile, Focus took a 12.12-percent hit on Monday, ending the day at AU$0.29.

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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.