Join our daily newsletter At The Bell to receive exclusive market insights
- Thomson Resources (TMZ) is selling its Texas project in Queensland to Warwick Gold Holdings (WGH)
- The company says this is the start of its plan to dispose of non-core projects to ensure its resources are focused on its ‘New England Fold Belt Hub and Spoke’ (NEFBHS) strategy
- WGH will pay Thomson $50,000 upfront, $150,000 when the acquisition is complete, a one per cent net smelter royalty, and a bond amount of roughly $3.3 million
- Once WGH takes ownership of the Texas project, it plans to restart processing operations
- TMZ shares are down 4.55 per cent to trade at 2.1 cents at 1:47 pm AEDT
Thomson Resources (TMZ) is selling its Texas project to Warwick Gold Holdings (WGH) for $3.5 million.
The companies entered a binding agreement for WGH to acquire the Queensland-based project and related assets, which Thomson said it considered to be non-core to its forward strategy.
“This is the start of Thomson’s disposal of non-core projects to ensure that its resources are focused on the key development project of the New England Fold Belt Hub and Spoke (NEFBHS) silver-gold-base metal project,” TMZ Executive Chair David Williams said.
In fact, the Texas project sale is the first of the planned divestments. with the company looking to demerge its Lachlan Fold Belt project in 2023.
Mr Williams also said holding the Texas project came with high operational costs — particularly the water management costs associated with the three La Nina weather events.
As such, it became a “high priority” for the company to sell the Texas project to WGH, which is “very enthusiastic” about the area and accessing the processing facilities.
“This is a good outcome for the site that has proven problematic for a number of operators, but WGH comes to this with quite a different strategy,” Mr Williams said.
Once the acquisition is complete, WGH would have acquired two mining leases, seven exploration permit minerals, four freehold properties, two environmental authorisations, plant and equipment, mineral resources, mining information, and provided financial assurance.
WGH will pay Thomson $50,000 within five days of the agreement, $150,000 upon completion of the acquisition, and a one per cent net smelter royalty on certain ore and minerals extracted.
Thomson Resources will also be paid a bond amount of roughly $3.3 million, which WGH will pay on a monthly basis.
WGH intends to restart processing operations at the Texas project as soon as possible.
TMZ shares were down 4.55 per cent to trade at 2.1 cents at 1:47 pm AEDT.
