27/06/2012 - 11:01

Matsa sells stake in Mt Henry to Panoramic

27/06/2012 - 11:01

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Matsa sells stake in Mt Henry to Panoramic

Gold hopeful Matsa Resources has inked a deal with Panoramic Resources that it says puts it on track to transition from explorer to producer in the near-term.

Matsa announced yesterday it had sold a 70 per cent stake in its Mt Henry gold project near Norseman to Panoramic, for $5 million in cash plus a 5.5 per cent stake in Panoramic.

The sale and purchase agreement will see Panoramic subsidiary Mt Henry Gold commence a bankable feasibility study for the project, and includes a $6.5 million buyout arrangement with a  $5 million royalty safety net should Matsa not participate further.

The agreement will also see a  joint venture established to explore for further gold mineralisation in the Mt Henry area.

Executive chairman Paul Poli said Matsa had received a deposit of $1.5 million from Panoramic, and all agreements were unconditional, pending regulatory and shareholder approval.

“This exciting development will enable Matsa to remain part of the Mt Henry gold project, whilst simultaneously providing it with substantial cash and liquid assets,” Mr Poli said in a statement.

“This in turn provides significant real and immediate value for all Matsa shareholders as well as providing longevity and a bright future for the company.

“Simply, it puts us on the map as a near-term potential gold producer."

Matsa has been looking to offload a stake in Mt Henry for the past two years.

Mr Poli said the project had generated a great deal of interest from numerous Chinese and Australian investors, but a favourable deal had not been reached until now.

“That’s why we decided to patiently continue negotiations and we have been rewarded by completing a transaction with a company of the quality and ilk of Panoramic Resources,” he said.

At 10:45AM, WST, Matsa stocks had risen 11.5 per cent, trading at 14.5 cents. 

 

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