Cashed-up In­ter­min set to spend

Kalgoorlie Miner - - MINETALK - Josh Chiat

In­ter­min Re­sources will tar­get fur­ther drilling around its Kal­go­or­lie gold project af­ter bank­ing a $2.5 mil­lion cash wind­fall from sell­ing a mi­nor­ity stake in a gold project near Le­in­ster to Sara­cen Min­eral Hold­ings.

The deal will see In­ter­min di­vest its 10 per cent share of the Lehmans gold joint ven­ture and one solely-held ex­plo­ration li­cence ten­e­ment to ma­jor­ity owner Sara­cen, which is look­ing to af­firm its con­trol of the de­posits sur­round­ing its Thun­der­box gold mine.

The project com­prises 14 ten­e­ments near the north­ern Gold­fields town of Le­in­ster, and in­cludes the 90,000 ounce Otto Bore de­posit, just 9km from the 2.5 mil­lion tonnes per an­num Thun­der­box pro­cess­ing plant.

In­ter­min has been paid $225,000 up front, with a fur­ther $2.25 mil­lion to come on the com­ple­tion of the deal — money In­ter­min man­ag­ing di­rec­tor Jon Price said would help back its ag­gres­sive ex­plo­ration push at a string of projects around Kal­go­or­lie-Boul­der.

A 2.5 per cent net smelter roy­alty cov­er­ing 58,000oz of pro­duc­tion from the project from its 42,000oz mark on could also de­liver up to $2.4 mil­lion if Sara­cen makes a de­ci­sion to mine.

Mr Price said the deal was ben­e­fi­cial for both com­pa­nies.

“We would just be dis­tracted as a mi­nor­ity part­ner in a JV like that,” he said. “We would be con­tribut­ing to the cap­i­tal, whereas we were free-car­ried to a de­ci­sion to mine, and then there would be the re­sult­ing chal­lenges of grade de­ter­mi­na­tion, hav­ing to go up there and be in­volved in it all. We be­lieve that cash now is a much bet­ter re­sult for both of us and we can put that money to good use in Kal­go­or­lie.”

In­ter­min con­trols 562,000oz of gold across its Anthill, Teal and Men­zies projects, and is pre­par­ing a new re­source es­ti­mate later this quar­ter.

Mr Price, whose com­pany has used the pro­ceeds of the small Teal open pit to fund a 60,000m drilling pro­gram this year, said the Gold­fields ex­plo­ration in­dus­try was op­er­at­ing at a fast pace at the mo­ment. “It’s good for the sec­tor be­cause it means there’s a lot of ac­tiv­ity go­ing on and bad for us be­cause it takes longer to get data.”

In­ter­min shares were last night un­changed at 15¢.

Pic­ture: Sara­cen Min­eral Hold­ings

Thun­der­box man­ager Si­mon Hill­yard with Cameron Dowel.

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