Bulletin Resources has enlisted its major shareholder Matsa Resources to acquire up to a 75 per cent interest for its Halls Creek gold projects in a $4.4 million binding term sheet.
Matsa will acquire a 49 per cent direct interest for a consideration of $600,000 cash, 2 million fully paid panoramic shares and 1.5 million Matsa shares.
In an ongoing joint venture Matsa may earn up to an additional 26 per cent via a staged expenditure up to a total cost of $3 million.
Bulletin owns the Lamboo and Biscay gold projects outside Halls Creek and has been looking for funding to enter production since September 2012.
Lamboo holds an estimated total resource of 1.45 million tonnes at 5.6 grams per tonne, for 261,000 ounces of gold, with the Biscay mine carrying an additional 323,000 tonnes at 3.2 grams per tonne for 34,000 ounces of gold and extra exploration targets.
Once the mines are ready to enter production, Bulletin may choose to co-fund the development or sell its remaining interest in the project.
Matsa is Bulletin’s largest shareholder, holding an approximate 23 per cent stake in the company
Shares in Bulletin are trading unchanged at 0.9 cents per share, whilst Matsa shares are up 1 cent at 23 cents per share, as of close of trade today.