Emerald Resources (ASX:EMR) has signed a binding term sheet with Golden Horse Minerals (TSX-V:GHML) to sell the company’s tenements located in Southern Cross, Western Australia.
As part of the transaction, Golden Horse will seek a dual listing on the Australian Securities Exchange (ASX).
Emerald, which is a developer and explorer of gold projects, will receive 32 million Golden Horse shares at an issue price of $0.25 per share subject to satisfying several conditions precedent.
While Golden Horse undertakes the ASX listing process, Emerald will provide a secured short-term loan facility to Golden Horse of up to $2 million.
Managing Director Morgan Hart says Golden Horse is highly complementary and provides Emerald shareholders with an investment “in a company focused on optimising exploration and development of a significant portfolio of highly prospective tenure in Southern Cross, a premier mining jurisdiction in Western Australia”.
Emerald’s Okvau Gold Mine in Cambodia was commissioned in June 2021 and in full production by September 2021.
Emerald has now poured over 300,000 ounces of gold from its operations. The company has significant exploration and resource growth potential in Cambodia through its holdings in a number of other projects, which are made up of a combination of granted mining licences and interests in joint venture agreements.
Together, Emerald’s interests in its Cambodian projects covers a combined area of 1,428km².
Emerald also has exploration and resource growth potential in Australia with two Western Australian gold projects comprising in excess of 1,300km² of tenure including the Dingo Range Gold Project, which covers over 900km² of the entire Dingo Range greenstone belt.
The spot price for gold is currently $3,717.62 (US$2,500.47) an ounce.
The World Gold Council says total gold supply in 2023 increased 3% year-on-year as mine supply and recycling both posted growth – to total 4,898.8 tonnes.
Australian gold production decreased by 4% year-on-year in the March quarter 2024, due to lower grades and disruptions from heavy rainfall, according to the Department of Industry, Science and Resources’ (DISR) latest issue of its Resources and Energy Quarterly: June 2024.
Production is forecast to grow over the outlook period as major new projects and expansions come online. Gold export earnings are expected to reach a record $33 billion in 2023–24, easing to around $31 billion in 2025–26 as prices gradually decline from record levels in Australian dollar terms.
World gold demand decreased by 5.3% year-on-year to 1,100 tonnes in the March quarter 2024. This fall was largely driven by a 28% decline in investment demand, with central bank demand continuing to be elevated.
Write to Adam Orlando at Mining.com.au
Images: Emerald
