THE Clough Group’s 82 per cent owned subsidiary PT Petrosea has announced an alliance agreement with Renison Consolidated for the provision of underground mining and maintenance services at the company’s Tom’s Gully gold mine in the Northern Territory.
The agreement will govern the management and undertaking of the underground gold mining operations at Tom’s Gully with PT Petrosea also supplying underground mine fixed assets, mine services and underground mining plant and equipment.
As part of the alliance, PT Petrosea will make a $2 million equity investment in Renison and provide funding support for the project through provision of fixed assets, mine services and the underground mining fleet, Renison said.
PT Petrosea has previously supplied a loan of $1 million to Renison towards the completion of the feasibility studies at the Tom’s Gully project. This loan will be converted into $1 million worth of convertible notes in Renison. PT Petrosea will also subscribe for an additional $1 million worth of Renison ordinary shares at an issue price of 12.5 cents per share to provide funding towards the underground mine development, the company said.
Renison said the development of the Tom’s Gully mine was a precursor to further development in the NT, including the objective of expanding production to over 60,000 ounces per annum from open-cut mining and other activities.
The Tom’s Gully project, which lies 90 kilometres south of Darwin, is part of Renison’s Northern Territory regional AuQuest project in which the company has outlined resources of over 570,000 ounces of gold from its 1,076 square kilometre tenement package.
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