(MENAFN- ProactiveInvestors)
() can look forward to near term income stream from a resumption to gold production in Tennant Creek from a royalty agreement struck with narrow vein mining specialists Edna Beryl Mining Company and partner Evolution Mining (ASX: EVN).
EBMC will commence permitting and if successful mine the high-grade Edna Beryl gold deposit within Emmerson’s Northern Project Area.
The signing of a “small mines” Tribute Agreement with EBMC will earn income for Emmerson while it continues discovering a new generation of gold-copper deposits in partnership with Evolution in Tennant Creek.
The agreement provides Emmerson with a golden opportunity to monetise other non-core assets within its massive 2500km2 of ground holdings.
Emmerson’s managing director Rob Bills said: “This agreement is a major step toward the resumption of mining activities within the Tennant Creek Mineral Field and will benefit all stakeholders.
Importantly "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.
"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.
"Some of the most famous mines within the mineral field such as White Devil were discovered from similar strategies.”
Background
Edna Beryl was discovered by prospectors in 1935 and mined underground in the 1940s and 1950s to a maximum depth of approximately 50 metres. Production up until 1952 was reportedly 2700 tonnes of ore at an exceptional grade of 53g/t gold.
Analysis
This agreement monetises non core assets and in the midst of challenging capital markets generates income to supplement Emmerson's exploration and development of new generation of gold-copper deposits in partnership with Evolution.
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