Linden Gold announces it has signed a binding conditional Joint Venture Agreement with ASX listed Matsa Resources Limited covering the Devon open pit.
Key Highlights
- A binding Joint Venture Agreement (“JV”) covering the Devon open pit has been finalised with Matsa Resources Limited (ASX: MAT)
- Linden will be appointed JV Manager and will seek to leverage its operational base at its Second Fortune underground operation 10km to the south of Devon
- The JV is conditional on Linden paying to Matsa an upfront prepayment of $4M cash for its 50% interest in Devon with Matsa to be free carried for all costs
- Linden expects to make payment from funds to be raised to fund the JV upfront payment and growth capital
- Linden to progress to ASX IPO in Q1 2023
Linden Gold’s Managing Director, Andrew Rich commented,
“We are thrilled to have restructured the Linden-Matsa deal with this new JV agreement which importantly provides Linden with continued exposure to the high-grade Devon open pit – the motivation for Linden entering its original deal with Matsa. The 50% interest in the Devon open pit is a welcome addition to our portfolio which includes the operational Second Fortune underground mine 10km to the south of Devon. Having these two exciting assets on our books allows us leverage operational synergies to potentially add high-grade, low-cost open pit ounces to our production profile by mid-2024.”
“With the JV agreement now in place, we can proceed with our IPO preparation, which, after the issue of a prospectus, we aim to complete in Q1 2023, through our joint lead managers, Argonaut and Canaccord.”
Devon Open Pit
The Devon open pit has had a scoping study completed which identified a mining inventory of 265kt at 4.64g/t for ~37koz. LGA has completed additional scoping work on a pit restart including diamond infill drilling and further pit optimisations with preliminary results supportive of a robust financial outcome, subject to feasibility.
LGA will complete a Definitive Feasibility Study on the pit restart with resource infill and expansion drilling to commence imminently with key target areas for drilling depicted in the below cross section, subject to approval from the JV committee.
Read the full media release here
