Strandline Resources - Mount Gunson Copper-Cobalt Project
Strandline Resources (ASX:STA) has announced that Torrens Mining, of which it is an 8.6% shareholder, has entered into a farm-in and JV agreement with Gindalbie Minerals over the Mt Gunson Copper-Cobalt Project in South Australia. Strandline is in line to receive a further $1m if a decision to mine is made, with this converting into $250k plus a 2% NSR if the assets are vended into or IPOd into an ASX-listed vehicle before the decision to mine.
Strandline Resources Limited (Strandline or the Company) (ASX: STA) refers to the announcement made by Gindalbie Metals Ltd (Gindalbie) on 17 March 2017 whereby Gindalbie informed the market that Terrace Mining Pty Ltd (Terrace), a wholly owned subsidiary of Torrens Mining Ltd (Torrens) has executed a farm-in and joint venture agreement with Gindalbie for the Mount Gunson Copper-Cobalt Project, located 135km north of Port Augusta in South Australia (Project) (the Farm-out). Gindalbie’s ASX announcement can be accessed on their website http://www.gindalbie.com.au/investor___media_centre/asx_announcements.phtml
Strandline is a substantial shareholder in Torrens (8.6%) following the sale of the Project to Torrens in 2016 (the Contract). Pursuant to the Contract, Strandline is eligible to receive a deferred cash payment of $1,000,000 once a formal decision to mine in connection with the Project is made. If, prior to a decision to mine, the Project assets become listed on the Australian Securities Exchange (whether via an IPO of Torrens or a sale into a listed vehicle), or the Project assets are otherwise sold to a third party, then $250,000 of the deferred cash consideration will become payable within 60 days and the remaining amount of the deferred cash consideration will convert to a 2% net smelter royalty (capped at $1.25M).
In accordance with the Contract, Strandline has been requested to consent to the Farm-out. Provided Strandline’s interests under the Contract are protected and all conditions of the Contract are met, including Gindalbie entering into a deed of assumption and assignment in favour of Strandline, the Company sees no reason why it would not consent to the Farm-out.
Strandline’s Managing Director Luke Graham commented – “We are pleased to see progress on the Project. Strandline is a major shareholder in Torrens, following the sale of the Mount Gunson Project to Torrens in 2016, and we look forward to continued progress through to a potential decision to mine the copper-cobalt mineral assets in time.”
