21/06/2018 - 13:47

Marindi sells Pilbara gold asset

21/06/2018 - 13:47

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Marindi Metals has agreed to sell its Bellary Dome conglomerate gold project in the Pilbara to Canada-listed Pacton Gold in a cash-and-scrip deal worth up to $11 million.

Marindi sells Pilbara gold asset
The project is prospective for conglomerate gold.

Marindi Metals has agreed to sell its Bellary Dome conglomerate gold project in the Pilbara to Canada-listed Pacton Gold in a cash-and-scrip deal worth up to $11 million.

Under the deal, Pacton will pay $2 million in cash and issue 10.1 million shares to Marindi, with a further $2 million in either cash or shares to be paid 18 months after completion.

Pacton has also agreed to grant an anti-dilution right to Marindi on capital raises up to $10 million.

Pacton already holds a number of tenements in the Pilbara that are prospective for conglomerate gold, including the Arrow project.

Marindi managing director Simon Lawson said the deal allowed the company to realise return from the work already completed.

“We believe that Pacton has the funding, the focus, the backing and the team to maximise the value of the Bellary Dome project by drawing on their knowledge of the conglomerate gold potential across the Pilbara,” he said.

“If the transaction is completed, Marindi shareholders will crystallise an immediate benefit in the form of cash that can be applied to our lithium and gold exploration programs at Forrestania, while retaining exposure to the future upside at Bellary Dome through our holding in Pacton.

“This is consistent with our focus on discovering and developing large-scale lithium and gold deposits at Forrestania, where we have a major drilling program currently under way adjacent to the world-class Kidman Resources-SQM lithium deposits.”

The two companies have agreed to a 10-day exclusivity period during which Pacton intends to complete due diligence and finalise a binding agreement.

Shares in Marindi were flat at 1.2 cents each at 3pm AEDT.

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