IGO Newsearch has announced that it has signed an agreement to acquire a 70% interest in Matsa Resources’ (ASX:MAT) Fraser Range Tenements. As part of the deal, the company will also buy the stake in the Symons Hill copper/nickel project. Matsa will still keep a 30% free carried interest in all of the tenements. This will be held until a feasibility study is finished or any decision is final for the development and mining of a deposit on each of the tenements in question.
Both companies are also planning to end existing commitments, and instead continue with one single agreement that covers Matsa’s stake in the Fraser Range tenements.
Matsa Resources chairman Paul Poli commented in a press release: “This transaction enables IGO to have unfettered access to any part of Matsa’s Fraser Range landholding and explore the tenements to the fullest extent without a specific time or cost demands. It provides Matsa with a cash boost, as well as receiving the expert knowledge and exploration experience of the IGO team which is second to none. Matsa welcomes IGO’s exploration know-how and capabilities throughout its Fraser Range tenement holdings.”
Highlights of the agreement are as follows:
- Matsa has entered in to an agreement whereby IGO will purchase a 70% interest in all of Matsa’s Fraser Range tenements
- Matsa will retain a 30% free carried interest in each of the tenements until the completion of a feasibility study or a decision to proceed to development and mining of a deposit on each of the tenements
- IGO will pay $600,000 cash and free carry Matsa for the 70% interest in the tenements
- The disposal of the non-core Fraser Range tenements allows Matsa to focus on its Lake Carey project but retain an interest in the potential upside at no cost.
Source: Matsa Resources