Maritana Minerals (ASX:MRT) has received a non-refundable $400,000 payment after Encore Minerals exercised its option to proceed with the Windarra Tailings Project development in Western Australia.
Encore made a final investment decision (FID) to proceed with the project under a binding heads of agreement dated 31 July 2024. In line with this, it has provided Maritana’s subsidiary Poseidon Nickel with an updated Definitive Feasibility Study (DFS) covering tailings processing from both Windarra and Lancefield projects.
Under the terms, Encore remains responsible for all funding, development, operation, closure, and rehabilitation of the project. Maritana retains a 3% net smelter return royalty on production from Windarra, with 1.5% applying to Lancefield tailings.
Managing Director Grant Haywood says the positive FID by Encore is a ‘strong’ endorsement of the value remaining in the Windarra tailings and an important milestone in Maritana’s strategy of unlocking value from every part of its asset portfolio.
“The tailings project will be fully funded, developed, and operated by Encore, with Maritana receiving staged cash payments and retaining a 3% net smelter return royalty on production — meaningful, ongoing exposure to the tailings project at no capital cost to our shareholders,” Haywood says.
Based on the agreement, Maritana is entitled to total cash payments of $1.25 million, which includes $250,000 received on execution in July 2024 and $100,000 upon exercise of the extended testing period in July 2025. Encore will also pay a $1.6 million rehabilitation bond contribution upon execution of the full form agreement.
A 2021 Windarra DFS outlined an ore reserve of around 5.5 million tonnes containing roughly 150,000 ounces of gold, with potential to produce 53,500–55,200 ounces over an initial 45-month period.
According to Maritana, monetising Windarra allows the company to focus on converting the Black Swan Processing Hub (BSPH), with first gold production planned for the second half of 2026.
However, Haywood maintains that Windarra remains “a highly prospective gold district”.
“We will continue to develop the gold prospectivity of the broader Windarra tenure and to evaluate all options for the Windarra assets to deliver further value for shareholders,” he says.
The Windarra Tailings Project is located 18km northwest of Laverton in Western Australia.
Maritana Minerals is an emerging mid-tier gold producer focused on developing its portfolio of open pit and underground deposits and the BSPH near Kalgoorlie-Boulder, Western Australia.
Write to Paula Fabe at Mining.com.au
Images: Maritana Minerals
