Terrain snaps up high grade project for little up front cost
Perth based Terrain Minerals have clenched an innovative deal to acquire an interesting high grade gold project from a private operator for almost no upfront cost.
The Rembrandt Gold Project boasts a great address just 100km north of the mining centre of Kalgoorlie and only 5km from the main road that joins Kalgoorlie to Menzies in Western Australia.
Under the terms of the deal Terrain must spend just $25 000 on exploration to secure a 3 month option to acquire 100% of project owner Rembrandt Mining Pty Ltd for nil upfront consideration.
In an innovative deal structure that doesn’t involve a traditional gold royalty, Rembrandt will be free carried to receive 25% of the profit from the project up to 15 000 ounces.
They will receive just 15% of the profit from the project for ounces produced over 15 000, also on a free carried basis.
A 1% net smelter royalty will apply for all other minerals except gold.
The project exhibits some interesting high grade historic drilling results including a 2m intersection grading 22.79 grams to the tonne, 1m @ 4.69 g/t, 2m@ 21.1 g/t, 2m @ 7.3 g/t and 2m @ 11.2 grams to the tonne gold.
Importantly, all results to-date are less than 40m in depth with the project still untested and open beyond that point.
Terrain says they already have three drill ready targets at the project and the company is currently planning an RC drilling programme.
The project will initially target shallow high grade zones that can be open pitted and toll treated nearby.
Terrain Executive Director, Justin Virgin said “Through the low cost option structure entered into with Rembrandt, Terrain has exposure to a high grade project with significant exploration upside, without an onerous cost structure.”
“Terrain will rapidly test the potential of Monet Prospect and determine if it represents a near term cash flow opportunity for the company. Additionally Terrain is seeking similar opportunities which have the potential of providing significant shareholder value” said Mr Virgin