ASX-listed company Thomson Resources (ASX:TMZ) reports it has entered into a binding agreement with private company Warwick Gold Holdings pursuant to sell the Texas Project, located in Queensland.
The company says the Texas Project comprises 2 mining leases and 7 exploration permits- minerals (EPMs) and various assets. The project is located 8km east of the township of Texas in Queensland, located around 10km from the border with New South Wales.
Thomson Resources Chairman David Williams says: “This is the start of Thomson’s disposal of non-core projects to ensure that its resources are focused on the key development project of the New England Fold Belt Hub and Spoke Silver-Gold-Base Metal Project (NEFBHS).
“This is the start of Thomson’s disposal of non-core projects to ensure that its resources are focused on the key development project of the New England Fold Belt Hub and Spoke Silver-Gold-Base Metal Project”
Texas was identified in the recent Central Processing Pathway Study as not satisfying the techno-economic evaluation and hence became non-core to the NEFBHS strategy. That coupled with the high operational costs associated with holding the project, particularly the water management costs associated with holding the Project, particularly the water management costs associated with the 3 consecutive La Nina weather events, meant it became a high priority to dispose of the Texas Project.
In Warwick Gold Holdings, we have found a group who are very enthusiastic with this area and accessing the processing facilities at Texas. This is a good outcome for the site that has proven problematic for a number of operators, but Warwick Gold Holdings come to this with quite a different strategy.
We look forward to working with the purchaser to provide a seamless transition of the site to them and to continue to work with them going forward on matters where there are mutual benefits.”
Thomson reports Warwick will purchase all of the assets in relation to the Texas Project including 2 mineral leases, 7 EPMs, 4 freehold properties, 2 environmental authorisations, various plant and equipment associated with mining operations, the existing Provided Financial Assurance, all mineral resources, and lastly all mining information.
As part of the agreement, Warwick will take on all existing and future environmental liabilities and will take full operational control of the project effective from the date of the agreement. It will also pay the consideration valued at $3.5 million to Thomson.
Warwick will also pay a 1% Net Smelter Royalty on any silver, gold, zinc and copper contained in the current published mineral resource estimate (MRE) for Twin Hills, Mt Gunyan and Silver Spur, and material of Heap Leach Pads at the Texas Site.
In light of findings from the NEFBHS Central Processing Pathway Study released in October, and the positive outcomes of that study, Thomson reports the board is now focused on dealing with non-core projects.
The Texas Project sale is the first of these divestments and the board is continuing discussions with third parties regarding the divestment of other projects.
In the case of the Lachlan Fold Belt Project, subject to any divestment proposal providing equal or better value for shareholders, Thomson’s board intends to commence obtaining approvals for the demerger of the Lachlan Fold Belt in early 2023.
Thomson Resources is a mineral exploration company with a diverse portfolio of gold, silver and tin tenements in New South Wales and Queensland. The company’s primary focus is its New England Fold Belt Hub and Spoke consolidation strategy along the New South Wales and Queensland borders.
The projects under the NEFBHS strategy include the Webbs and Conrad Silver Project, the Texas Silver Project and Silver Spur Silver Project, as well as the Mt Carrington Gold-Silver Base Metal earn-in and joint venture.
Additionally the company is also progressing exploration activities at the Yalgogrin and Harry Smith Gold Projects, the Bygoo Tin Project in the Lachlan Fold Belt in central New South Wales which may form another hub and spoke strategy, as well as the Chillagoe Gold and Cannington Silver Projects located in Queensland.
Images: Thomson Resources Ltd
