Matsa Resources (ASX:MAT) is set to receive $55 million from AngloGold Ashanti (NYSE:AU) after the gold major exercised its option early to acquire tenements at the Lake Carey Gold Project near Laverton in Western Australia.
Under the revised tenement option agreement, AngloGold Ashanti will pay a $10 million deposit within three business days and the remaining $45 million at completion, scheduled for 15 business days following satisfaction of completion conditions.
The completion conditions include Matsa receiving ministerial consent for the transfer of tenements and obtaining third-party consents to the assignment of contractual rights linked to the sale assets.
The revised terms replace the original formula-based pricing linked to the gold price plus deferred consideration with a fixed $55 million payment structure.
The company says the vast majority of its Lake Carey Gold Project, including the Fortitude North and Fortitude gold projects, remains with Matsa.
AngloGold Ashanti retains a first right of refusal over the Fortitude North tenement for 12 months from the option exercise date until 21 September 2027, allowing it to match any bona fide third-party offer for Fortitude North.
Matsa intends to keep shareholders informed through ASX announcements when the deposit and final completion payment are received and will advise on the proposed use of funds.
Separately, the company announced it has drawn down on its new $4 million loan facility with Deutsche Balaton Aktiengesellschaft to repay existing loan facilities with Nitro Super and Morkim. The new facility carries a 12% interest rate and has a repayment date of 30 June 2027.
In the meantime, Matsa continues to progress its operational review and liaise with KPMG (receiver and manager) and KordaMentha (administrator), who have been appointed to two of its subsidiaries.
The company’s shares remain suspended from trading until it completes the operations review process and provides a market update.
Matsa Resources is a mineral explorer and gold miner operating south of Laverton.
Write to Paula Fabe at Mining.com.au
Main image: Matsa Resources
