Aureka (ASX:AKA) has notified its joint venture partner Catalyst Metals (ASX:CYL) that the group has begun a strategic review of its 49% interest in the Tandarra Gold Joint Venture Project in Victoria.
The review will consider a range of potential outcomes including Aureka maintaining its stake in the project, a potential disposal of interest, diluting to a lower participating interest, and conversion to the pre-agreed production royalty.
Aureka, which has a market capitalisation of $15.38 million, could also decide to no longer retain any interest in the project.
The company notes the review process if confidential and may take several months to complete. It provides no certainty that the review will result in any transaction or change to Aureka’s interest.
Tandarra contains three main prospects named Tomorrow, Macnaughtan, and Lawry. The prospects are located 50km northwest of Agnico Eagle’s (NYSE:AEM) Fosterville Gold Mine and 44km north of the 22 million ounce Bendigo Goldfield.
Eureka says the Tandarra project is currently observing annual drilling campaigns as part of works aimed at attaining a maiden resource.
Recent drilling confirmed multiple zones of gold mineralisation extending well into the fresh rock and the gold distribution may be similar to that mined at the Bendigo Goldfield where 22 million ounces of gold was produced.
Speaking to Mining.com.au, Managing Director James Gurry says the company has seen an increased interest from investors, as previously reported.
“We are getting a lot of incoming calls from both strategic industry players and larger investors which is great for a small cap company like ours,” Gurry says.
Write to Aaliyah Rogan at Mining.com.au
Images: Aureka
