Monument, through its Australian subsidiary, owns the 100% of Tuckanarra project, along with the Burnakura and Gabanintha gold projects
Canada-based Monument Mining has established a joint venture partnership with Odyssey Energy to advance the Tuckanarra Gold Project, located in the Murchison Goldfield.
Monument, through its Australian subsidiary Monument Murchison, owns the 100% of Tuckanarra, along with the Burnakura and Gabanintha gold projects as high-grade gold development projects in the Meekatharra district.
Under the JV partnership agreement, Monument will sell 80% interest in Tuckanarra to Odyssey, in exchange for A$5m ($3.5m) in cash and would develop Tuckanarra project together with Odessey.
Also, the company will retain a 1% NSR royalty over Odyssey’s 80% shared interest, along with a 20% interest in Tuckanarra project, until a decision to mine.
Monument Mining president and CEO Cathy Zhai said: “The JV arrangement with Odyssey is a strategic move by the company to divest Tuckanarra, one of our quality gold projects, allowing it to be advanced faster; and have our team focus on the primary highly prospective gold projects Burnakura and Gabanintha, former mining centres in Meekatharra and Cue region, and move these two projects closer to production through our existing infrastructure.
“This strategy will complement our Selinsing Gold Project in Malaysia, which has been in production since 2010 and has produced over 315,000 ounces of gold to date.”
Following the closing of the transaction, Odyssey is expected to progressively explore the high-grade opportunity at Tuckanarra.
Tuckanarra is located next to Odyssey’s Stakewell gold project
Tuckanarra is located directly adjacent to the Stakewell gold project, which was recently acquired by Odyssey.
Odyssey will own tenements covering 25km of highly fertile banded iron formation and greenstones with gold mining history. Monument is expected to preferentially process Odyssey’s ores extracted from both projects, pursuant to commercial terms at the Burnakura gold processing plant.
Zhai added: “We are excited to work with the Odyssey team, a part of Apollo Group in Perth which has a long and successful history of exploring and developing mining assets around the world. Apollo Group collectively has financed in excess of $1bn of
mining projects. We are open to all opportunities to increase our shareholders’ value as a whole.”