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- Dateline Resources (DTR) secures a partnership with US-based MW Sorter enabling production to restart at its Gold Links project in Colorado
- The deal combines the Gold Links mine, Lucky Strike processing plant, and MW’s stockpiles at the London and Hock Hocking mines under a new entity
- The US entity will be half owned by Dateline, 40 per cent by MW, and 10 per cent by a private Australian investor
- At the same time, DTR’s application to certify its right to access and extract mineral resources at the Colosseum mine in California has been approved
- DTR shares are trading grey at 3.6 cents at 2:07 pm AEDT
Dateline Resources (DTR) has secured a partnership with US-based MW Sorter enabling production to restart at its Gold Links project in the US state of Colorado.
The new deal will combine Dateline’s Gold Links and Lucky Strike processing plant with MW Sorter’s stockpiles at the London and Hock Hocking mines under a new US entity.
DTR will own half of the new entity, with MW to hold 40 per cent and a private Australian investor to take ten per cent.
Dateline Managing Director Stephen Baghdadi said the company’s shareholders were “naturally” disappointed by the suspension of mining at Gold Links, but now the new joint venture would allow gold production to recommence.
“When we commenced the search for a joint venture partner for Gold Links, we sought a partner that had both financial capabilities as well as US operating experience,” Mr Baghdadi said.
“By partnering with MW, we bring together two quality assets that have the potential to
generate better returns than if developed independently.”
As part of the transaction, MW and the Australian investor have injected US$440,000 (A$645,000) into Dateline subsidiary Fossil Creek Mines and arranged a new US$5 million working capital facility.
In other news, Dateline on Friday announced it had received approval from San Bernardino County, California, for its application to certify pre-existing vested rights to access and extract mineral resources at the Colosseum mine.
The final step required to formalise the approval has been completed, and the County is expected to record and issue the Certificate of Land Use Compliance shortly.
Mr Baghdadi said while the company had always been confident of its right to mine and explore at the Colosseum, it was happy to have this formally confirmed by the County.
“There is significant potential for mineral resource expansion at Colosseum, with a drilling gap between the bottom of the existing mineral resource and where the deepest hole intersected the gold bearing breccia pipe at around 3000 feet vertical depth,” he said.
“We are finalising our gold and rare earth drilling plans and hope to be back on the ground in the near future.”
DTR shares were trading grey at 3.6 cents at 2:07 pm AEDT.
