Liontown Resources to acquire 100 per cent of Jubilee Reef gold project

/in /by

THE DRILL SERGEANT: Liontown Resources (ASX: LTR) is to acquire the remaining 34 per cent interest in the Jubilee Reef gold project in Tanzania, East Africa from its joint venture partner Currie Rose Resources.

The deal will result in Liontown holding 100 per cent ownership of the project.

“The opportunity to acquire 100 per cent ownership of the Jubilee Reef project and renegotiate the royalty was extremely attractive to Liontown and represents a good outcome for shareholders,” Liontown Resources chairman Tim Goyder said in the company’s announcement to the Australian Securities Exchange.

“Having the opportunity to consolidate ownership of the project will provide shareholders with exposure to 100 per cent of its substantial exploration potential and will be an important factor in being able to manage future exploration as effectively as possible.”

Liontown said it has completed a total of 22,296 metres of RC, diamond and aircore drilling since work commenced on the Jubilee Reef project in mid-2011.

The drilling has encountered broad intersections at the Masabi Hill, Panapendesa and Chela prospects with better intersections recorded at Masabi Hill in particular, including:

–    50 metres at 1.8 grams per tonne gold from 40 metres, including 27 metres at 2.8g/t gold from 42 metres;

–    62m at 2.4g/t gold from 70m, including 21m at 4.7g/t gold from 70m;

–    68m at 1.5g/t gold from 132m, including 28m at 1.9 g/t gold from 133m; and

–    86m at 1.7g/t gold from 9m, including 44m at 3g/t gold from 24m.

Liontown said it is currently reviewing all data from Jubilee Reef and is planning field work to be undertaken following the cessation of the northern Tanzanian wet season.

 

Jubilee Reef – location plan. Source: Company announcement

 

In consideration for increasing its interest in the Jubilee Reef Project to 100 per cent, Liontown will issue 12 million shares to Currie Rose and make a payment of up to US$120,000 for any transaction costs.

Under the terms of the existing Jubilee Reef Joint Venture Agreement, Currie Rose had a right to receive a 3 per cent net smelter royalty upon its interest being diluted to 5 per cent.

As part of the agreement to acquire the remaining interest, Currie Rose will now receive a 2 per cent net smelter royalty on future gold production from the Jubilee Reef project.

Liontown will have the option to purchase the 2 per cent net smelter royalty in the event that a Preliminary Economic Assessment is completed for a resource in excess of 250,000 ounces of gold (or gold equivalent).