Emmerson Resources Ltd. agreed to sell its mothballed Warrego mill lease in Northern Territory, Australia, to Territory Resources Ltd. in exchange for preference over other third parties when the latter builds a processing facility at the site.
Territory Resources will construct a proposed 300,000-tonne-per-annum facility on the Warrego lease and is targeting first gold production late this year, according to a May 31 release.
The companies intend to establish profit share or royalty agreements for mining and processing of Emmerson's portfolio of mines and tailings at Warrego.
As part of the strategic alliance, Territory Resources will enter an earn-in and potential joint venture over Emmerson's southern tenements.
The area contains the historical Nobles Nob and Juno deposits and gold tailings from these projects will provide a feed source to the central processing facility.
Territory Resources will pay an initial A$100,000 nonrefundable deposit to Emmerson, with further payments subject to final negotiations and transfer of liabilities.
Emmerson will manage and operate the exploration program of any future farm-in and joint venture.
