White Cliff to bank $275k for gold project divestment

By Matt Birney

16/11/2020 - 15:37

Bulls N' Bears Announcements

ASX-listed White Cliff Minerals has entered into an agreement to sell its non-core Merolia gold project near Laverton in WA to London-listed explorer, Panther Metals, for about $274,000 in cash and shares. Divestment of Merolia will allow the Perth-based company to focus on its historic Reedy South project 40km north of Cue and its Midas copper-gold project in the Paterson Province, both in WA.

White Cliff to bank $275k for gold project divestment

ASX-listed gold and base metals explorer, White Cliff Minerals, has entered into an agreement to sell its non-core Merolia gold project near Laverton in WA to London Stock Exchange-listed explorer, Panther Metals, for a total up-front consideration of about $274,000.

The transaction, involving a cash payment of $112,500 and an allocation of 734,470 Panther shares to White Cliff, is expected to be finalised next month. Divestment of Merolia will allow the Perth-based company to focus on the historic Reedy South project 40km north of Cue and its Midas copper-gold project in the Paterson Province, both in WA.

White Cliff Minerals Non-Executive Chairman, Michael Soucik said: “While the (Merolia) project has historical, high-grade gold results and a lot of potential to delineate a future maiden resource, the board considers that it is non-core to the company’s future direction which centres around the Reedy South gold project and the Midas copper-gold project.”

White Cliff recently unveiled a maiden inferred and indicated resource estimate for Reedy South of 779,000 tonnes going an average 1.7 grams per tonne for 42,400 ounces of contained gold.

It is also looking to expand its ground holdings around the project via the nearby Cracker Jack gold project and an exploration licence application that are set to lift the combined Reedy South tenements area from 156 square kilometres to 272 square kilometres.

At Midas, the company has recently undertaken a geochemical program comprising 502 soil samples across a handful of priority targets.

The world-class Paterson Province, in the remote Great Sandy Desert, has re-emerged as a minerals exploration magnet following the recent Havieron and Winu copper-gold discoveries owned under a joint venture between Newcrest Mining and Greatland Gold and by Rio Tinto, respectively.

Newcrest’s huge Telfer gold-copper mine is also situated in the Paterson.

Is your ASX listed company doing something interesting? Contact: matt.birney@businessnews.com.au