10/03/2017 - 13:39

Independence in Fraser Range JV with Orion

10/03/2017 - 13:39

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Gold and nickel miner Independence Group has expanded its presence in the Fraser Range after entering into an agreement to farm-in to Orion Gold’s tenements in the area for an initial $2 million in cash and scrip.

Independence in Fraser Range JV with Orion
Orion holds tenements in a joint venture with prominent prospector Mark Creasy. Photo: Attila Csaszar

Gold and nickel miner Independence Group has expanded its presence in the Fraser Range after entering into an agreement to farm-in to Orion Gold’s tenements in the area for an initial $2 million in cash and scrip.

Independence will acquire an initial 70 per cent stake in Orion’s wholly-owned tenements, a 60 per cent interest in tenements Orion already holds in a JV with prominent prospector Mark Creasy, and a 65 per cent interest in a tenement held between Orion and Geological Resources.

It will pay $700,000 in cash and acquire $1.3 million Orion shares at a premium of 2.4 cents each to acquire the stakes.

Independence will also hold options to further increase its stake in the respective tenements, subject to various payments.

It should be noted that Mr Creasy gained a shareholding in Independence after the mining company acquired Sirius Resources' Nova nickel mine in the Fraser Range in 2015.

“This is a very important transaction for Orion which secures the involvement of the dominant player in the Fraser Range belt in the ongoing exploration of our highly prospective tenement holding,” Orion managing director Errol Smart said.

“Orion will benefit from Independence’s extensive expertise in the region, particularly the knowledge they have gained through the development and operation of the world-class Nova-Bollinger project, and their ability to fund ongoing exploration programs.

“There is no doubt in our minds that Independence is best placed to spearhead the next phase of exploration and hopefully unlock the next significant discovery.”

Mr Smart said the deal was structured in a way that ensured Orion retained exposure to the tenements without financial commitment through to the completion of a pre-feasibility study.

“This frees us up to devote more resources to the development of our South African zinc-copper and gold projects,” he said.

Orion shares were 10.5 per cent higher to 2.1 cents each at the close.

Independence shares were 1.8 per cent lower to $3.43 each.

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