Macarthur Minerals Ltd. has entered into an exclusive agreement with Zanil Pty Ltd. to undertake due diligence on 10 tenements in and around the Leonora Goldfields region in Western Australia. The agreement is intended to strengthen the value proposition for a potential future repositioning of Macarthur’s non-iron ore assets, the company said. Macarthur said it will undertake a legal review of these tenements alongside a geological assessment and ultimately, the completion of an independent valuation on behalf of Zanil. The purpose of this due diligence is to assess the value implication of amalgamating these historic gold/copper mining tenements into a transaction to spin out these areas alongside the company’s Pilbara gold, lithium and copper tenements. The exclusivity period under the agreement allows Macarthur a period of 90 days to complete its due diligence review.
Zanil either directly holds rights over, or is duly authorized on behalf of the relevant tenement holders, to enter into the agreement with Macarthur in respect of these tenement areas: the Leonora tenements located in the Central Goldfields region of Western Australia, approximately 237 kilometers (km) north of the city of Kalgoorlie within the proximity of active gold mines such as Agnew gold mine, Gwalia gold mine and Sunrise Dam gold mine.
The tenement portfolio consists of two mining leases and eight prospecting licenses, with nine of the areas located on historic gold workings. The other tenement, Barlowâ’s Gully, has no established mine workings, but has been subject to surface gold extraction for more than 100 years.
Key tenements are Garden Well, Camel Lease, Great Northern, Barlow’s Gully and Coppermine.
The past production reported from these areas are not treated as current or historical mineral resources and further exploration is required to understand the potential for gold or copper mineralization.
Alan Joe Phillips, managing director of Macarthur Minerals, commented, “The main focus for the company is ‘first and foremost’ the ongoing development of the Lake Giles Iron Ore assets. The entering into of the due diligence agreement with Zanil is designed to all for an exclusive low-cost review of the Central Goldfields assets to augment the company’s Pilbara gold, copper and lithium tenement portfolio.
“If these tenements demonstrate value, Macarthur will consider spinning out this portfolio as part of a wider Pilbara/Central Goldfields transaction. The objective is to create value for shareholders by exploiting these tenements without detracting or distracting Macarthur from delivering on its substantial Lake Giles Iron Project.”