THE BOURSE WHISPERER: Emmerson Resources (ASX: ERM), with its partner, Evolution Mining (ASX: EVN) announced the signing of a ‘small mines’ Tribute Agreement with Edna Beryl Mining Company (EBMC).
The agreement allows EBMC to commence permitting and if successful, mining of the high-grade Edna Beryl gold deposit, part of Emmerson’s Northern project area, located within the Tenant Creek Mineral Field.
Once it has secured the relevant permitting, EBMC intends to commence mining at Edna Beryl as soon as it can.
The deal means the mine can be re-opened while Emmerson concentrates on other matters.
Emmerson believes the standalone deal offers it a number of advantages, including a risk-free, near term income stream from its non-core assets via a royalty agreement; future access to refurbished underground workings for near mine exploration; and the opportunity to monetise other non-core assets, subject to formal agreements being executed.
“This agreement is a major step toward the resumption of mining activities within the Tennant Creek Mineral Field,” Emmerson Resources managing director Rob Bills said in the company’s announcement to the Australian Securities Exchange.
“The Tribute Agreement is structured so that EBMC is self-sufficient and does not distract from our key task of discovering a new generation of gold-copper deposits in partnership with Evolution.
“Moreover, if successful the tribute agreement will supplement our already healthy cash reserves and provide further opportunities to gain access to these historic, high-grade mines for near-mine exploration, keeping in mind that some of the most famous mines within the mineral field such as White Devil were discovered from similar strategies.”