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- Gateway Mining (GML) is continuing to simplify and restructure its business with the sale of one of its non-core assets in the Sandstone region of WA
- The junior gold explorer has divested the exploration tenement to fellow ASX-listed Alto Metals (AME) for $50,000 worth of Alto shares
- As part of the deal, Alto has also granted Gateway a one-per-cent net smelter revenue royalty over the tenement
- The buyer can extinguish this royalty by paying Gateway $2.5 million upfront when it comes to a decision to mine
- Gateway Managing Director Mark Cossom says the company divested the tenement to focus more on its flagship Gidgee Gold Project in WA
- Today’s news comes not long after Gateway reshuffled its management team to drive further growth at the Gidgee project
- Shares in Gateway Mining closed 3.33 per cent higher this afternoon at 3.1 cents per share
- Alto shares closed grey at 7.8 cents each.
Gateway Mining (GML) is continuing to simplify and restructure its business with the sale of one of its non-core assets in the Sandstone region of WA.
The junior gold explorer has divested exploration tenement E57/1108 to fellow ASX-listed Alto Metals (AME) for $50,000 worth of Alto shares. The price of the shares will be determined by AME’s 10-day volume-weighted average price the day before the sale is formally executed.
As part of the deal, AME has also granted Gateway a one-per-cent net smelter revenue royalty over the tenement. Alto can extinguish this royalty by paying gateway $2.5 million upfront when it comes to a decision to mine.
Gateway’s newly-appointed Managing Director, Mark Cossom, said the call to pass the tenement to Alto comes from GML’s renewed focus on its flagship Gidgee Gold Project, where it hopes to unlock a large-scale gold system.
“The transaction crystallises value, from the divestment of this non-core tenement, while preserving exposure for our shareholders to future upside from exploration success through a future production royalty and shares in Alto,” Mark said.
“The divestment allows us to continue to focus our resources on our flagship Gidgee Project, which we are really excited about,” he said.
Today’s news comes not long after Gateway reshuffled its management team to drive further growth at the Gidgee project.
Last week, then-Managing Director Peter Langworthy stepped into a new role as Executive Chairman. Mark, who was Executive Technical Director at the time, was made Managing Director.
Further, the company also announced it was moving its operations office from Subiaco in WA to Sydney, NSW, effective immediately.
Shareholders seem supportive of the company’s renewed focus on the Gidgee project, with shares up 3.33 per cent today to close at 3.1 cents each. Gateway Mining has a $59 million market cap.
Alto shares closed grey at 7.8 cents each.
