- European Cobalt (EUC) has now secured 100 per cent of shares in Maroon Gold, a move which has been anticipated since November 14
- It will obtain these shares for 900 million shares and $100,000 in cash amongst other conditions
- The company has also secured the fully operational carbon-in-pulp processing plant and associated infrastructure
- European Cobalt is steady today with shares currently trading for 2.2 cents apiece
European Cobalt (EUC) has now secured 100 per cent of shares in Maroon Gold, a move which has been anticipated since November 14
The mining company has today acquired all of the Maroon Gold shares for 900 million EUC shares, $100,000 cash and assumption of US$18.3 million (AUD$27 million) debt, repayment of $2 million convertible notes and $2 million working capital liability.
However, this transaction is subject to European Cobalt shareholder approval.
The company also announced it has secured a fully operational conventional 340,000 tonne per annum CIP (carbon in pulp) processing plant and associated infrastructure.
The Blackjack Processing Plant is located directly south of Charters Towers and the Conventional CIP Plant was initially installed in 1996 and refurbished in December 2018.
The Far Fanning Project is Maroon Gold’s open cut and waste rock ore sorting operation.
It is located 60 kilometres southwest of Townsville in Queensland, 96 kilometres to the Blackjack Plant.
Open-pit mining at Far Fanning occurred between 1986 and 2004 from seven oxide pits along a 1700 metre strike length.
It has a global inferred mineral resource of 1.17 million tonnes at 1.7g/t gold for 64,000 ounces of gold.
Tendering for resource upgrade and a pre-feasibility is underway to define the development pathway for the project and limited drilling has been conducted to test the underground potential.
Mining at Maroon’s 100 per cent owned Blackjack began in 1871 and consisted of predominantly underground mining.
The total recorded historical production was 78,467 tonnes at 42.64g/t gold for 107,584 ounces of gold.
European Cobalt will now devise and budget resource expansion programs and will identify priority drill targets outside of existing resources.
The company will also evaluate and prioritise proximal acquisition targets and assess till treatment opportunities.
European Cobalt is steady today with shares trading for 2.2 cents apiece in a $16.75 million market cap.