Emmerson Resources to Retain Gold Projects in Restructure with Evolution Mining

THE BOURSE WHISPERER: Emmerson Resources (ASX: ERM) revealed results of discussions on the future of the Tennant Creek Mineral Field (TCMF) JV with Evolution Mining (ASX: EVN).

Emmerson Resources said the discussions had resulted in a proposed new ownership structure that reflects the differing size and corporate objectives of the two companies.

Under the restructure, Emmerson is to retain a 100 per cent (as opposed to 35% under the current terms of the TCMF JV) of all the gold dominant assets, prospects and associated exploration ground.

Emmerson emphasised that the TCMF is one of Australia’s highest-grade goldfields and is where Emmerson (and partners) have made the first new discoveries for over a decade.

The company added that these discoveries have been underpinned by a substantial investment by Evolution in acquiring new data, along with the application of new exploration tools and directly leading to the discovery of a new generation of hematite hosted, high grade gold projects such as seen at Edna Beryl and Mauretania.

Evolution will take a 100 per cent holding in the tenements (or parts of them) that contain the Gecko, Goanna, and Orlando copper-gold prospects.

These comprise some six per cent of the entire TCMF land position and are predominantly copper rich but are considered to have potential for gold grades to increase at depth.

Further exploration of these prospects will require deep drilling and Evolution intends to test these prospects for potential new discoveries of scale at depth and along strike.

“Emmerson is very pleased with the outcome of these negotiations with our partner, Evolution Mining,” Emmerson Resources managing director Rob Bills said in the company’s announcement to the Australian Securities Exchange.

“This proposed restructure better aligns the assets with the respective companies.

“It provides Emmerson shareholders with near term, high margin gold assets and exploration ground that can be more easily developed within the constraints of the Emmerson balance sheet.

“Importantly, the investment in new data during the term of the JV has provided new insights into what we believe is a new generation of high grade, hematite hosted gold deposits.

“Directly leading to discoveries at Edna Beryl West, Mauretania and a string of promising drill intercepts that will now be followed up.

“Emmerson also look forward to accelerating the monetisation of our small mines portfolio given that we are now the 100 per cent owner.”

 

Website: www.emmersonresources.com.au