Join our daily newsletter At The Bell to receive exclusive market insights
- Classic Minerals (CLZ) enters a memorandum of understanding (MoU) with Barto Gold Mining to progress the Kat Gap gold project towards production
- Under the deal, Barto Gold Mining will utilise its Southern Cross processing plant to toll treat gold ore extracted from Classic’s Kat Gap project in WA
- Classic says this toll milling option provides a processing solution while it waits for final approvals to use its Gekko plant
- The agreement follows and complements a recent funding deal with Goldvalley Brown Stone, which agreed to provide up to $10 million to extract and process ore from Kat Gap in exchange for 30 per cent of the net profits
- CLZ shares are trading grey at 1.7 cents at 12:16 pm AEDT
Classic Minerals (CLZ) has entered a non-binding memorandum of understanding (MoU) to progress its Kat Gap gold project towards production.
Classic signed the agreement with Barto Gold Mining, a nearby gold processor that owns the Southern Cross gold operation, capable of processing one million tonnes per annum.
Under the deal, Barto Gold Mining would utilise its processing plant to toll treat gold ore extracted from Classic Minerals’ Kat Gap project in Western Australia.
The company said this toll-milling option provided a processing solution while it awaited final approvals to use its Gekko plant.
The MoU follows Classic’s recent agreement with Goldvalley Brown Stone, which agreed to provide up to $10 million in funding for the extraction and processing of ore from Kat Gap. In exchange, Goldvalley will pocket 30 per cent of the net profits from gold production.
Classic Minerals said the MoU with Barto brought it one step closer to signing a formal agreement with Goldvalley as they worked towards mining Kat Gap ore to extract up to 50,000 ounces from the deposit.
“The company is excited to move forward and is determined to keep costs down whilst not seeing ownership of the project diminished,” CLZ Chair John Lester said.
CLZ shares were trading grey at 1.7 cents at 12:16 pm AEDT.
