TNT Mines Limited (ASX:TIN) looks set to purchase the Mt Ida Gold Project after signing a non-binding term sheet with Ora Banda Mining Limited (ASX:OBM) that would see the asset change hands for $11 million.
The parties are working towards a finalised agreement within seven days of acceptance, with TNT given 14 days to finalise legal, financial and technical due diligence.
The Australian Financial Review reported earlier today that TNT is raising up to $14 million via convertible loan to fund the project, with $10 million already secured. It is a condition of the agreement that TNT raise at lease $12 million to move forward with the purchase.
The project is situated approximately 200km from Kalgoorlie and 120km from the Davyhurst Processing Facility, and houses a 141,000 oz @ 13.8g/t Au indicated & inferred resource, with historic production of 306,800 oz @ 17.2 g/t Au.
Shares in TNT were placed into a voluntary trading halt earlier today pending further news on the planned purchase and related capital raising.