Tectonic Gold Plc - Farm out of Specimen Hill to ASX listed White Energy
(“Tectonic” or the “Company”)
FARM OUT OF SPECIMEN HILL TO ASX LISTED WHITE ENERGY
Highlights:
1.White Energy to immediately take over responsibility and all future funding for Specimen Hill 1.White Energy to spend up to$2 million and earn right to acquire. 2. Acquisition for a further$2 million and a 3% royalty. 2.White Energy backed by high profile Australian family office with interests spanning mining, energy, resources, technology and philanthropy. 3.White Energy to focus on copper potential at Specimen Hill as part of a transition energy metals strategy
Following this technical program, final deal terms were negotiated for a farm out by Tectonic of the Specimen Hi ll project as follows:
-- Stage 1 –White Energy earn an option to acquire 51% at the project level for a cash spend of AU$1 million -- Stage 2 –White Energy earn an option to acquire a further 25% (76% in total) by spending a further AU$2 million -- Stage 3 -White Energy purchase the balance of the project for AU$2m in cash -- A non-diluting 3% Net Smelter Return Royalty in favour of Tectonic is also established at the completion of the purchase
Tectonic will shortly be submitting a final R&D claim to the
Mr.
“We are very pleased to be partnering with the exceptional team at
The royalty enables our shareholders to retain meaningful the long term upside in the discoveries Tectonic has made at Specimen Hill while
It has been a long journey since we first acquired the initial ground at Specimen Hill and this is a good result and proof our original exploration thesis had merit. We still hold the Mt Cassidy project area to the north of Specimen Hill which the Queensland Government has waived license fees on so we have time to consider development options.
I would like to congratulate the team for taking this project from concept to discovery and successful transaction. They are now freed up to focus on other opportunities which we have been working up over the last six months and look forward to sharing in due course.”
The Directors of the Company accept responsibility for the contents of this announcement.
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For further information, please contact:
Tectonic Gold plc Brett Boynton +61 2 9241 7665Sam Quinn www.tectonicgold.com@tectonic_goldAquis Stock Exchange Corporate Adviser and BrokerVSA Capital Limited +44 20 3005 5004Andrew Raca – Corporate FinanceAndrew Monk – Corporate Broking