Intermin signs farm-in with La Mancha

La Mancha Resources has signed an agreement to acquire up to 70 per cent of Perth-based explorer Intermin Resources’ Binduli gold project near Kalgoorlie.

La Mancha can earn an initial 51 per cent interest in, and become manager of, the project by spending $2.1 million within three years at Binduli, with the option to earn a further 19 per cent by spending a further $2.5 million over another two years.

The project is near La Mancha’s Frogs Leg underground gold mine; the project which Evolution Mining confirmed last month that it was in discussions for a potential purchase, for a price understood to be around $400 million.

The potential sale would also involve La Mancha's nearby White Foil open pit gold mine and the 1.7 million tonne per annum Mungari processing plant.

The joint venture agreement excludes several granted mining leases that contain Intermin’s Teal and Peyes Farm gold deposits, which form the company’s open pit mining development.

“We believe that the region immediately north-west of Kalgoorlie is very much under-explored and that there are significant discoveries still to be made in this area,” managing director Michael Ruane said.

“La Mancha is a logical partner to team up with, given their strong interests in the immediate area and their position as a successful producer.

“Importantly, they have the requisite financial and technical resources to aggressively pursue systematic exploration programs,” he said.

Mr Ruane is also a director of exploration companies Metaliko Resources and Reward Minerals.

Intermin shares were unchanged at 5.3 cents each at 11:10am.