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- Binding agreement to acquire existing Mining Leases and water licence
- Full control of the Spring Hill removes last third-party tenure and mining activity
- De-risks permitting, approvals and project financing
- Mining Lease application would expand Spring Hill’s footprint by 43%
PC Gold’s (ASX: PC2) wholly-owned subsidiary TM Gold has entered into a binding agreement to acquire total control of the Spring Hill gold project in the Northern Territory.
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The deal with JSM Mining will allow PC Gold to acquire the last third-party Mining Leases within the 1.5 million ounce Spring Hill project.
PC Gold through TM Gold will hold title to all mining tenure within the project area, consolidating control of the ground required to develop Spring Hill.
Together with TM Gold’s application to expand its existing Mining Lease boundaries over a further 443 hectare, the acquisition positions PC Gold to consolidate the full development footprint ahead of the PFS.
PC is outlaying a $6.5 million consideration comprises $4.5 million cash, funded from existing reserves and $2.0 million in PC Gold shares.
“Securing the last third-party tenure inside Spring Hill is an important step in de-risking the development pathway for the project,” executive chairman, Ashley Pattison, said.
“Bringing the existing Mining Leases, water licence and operating permit under our ownership consolidates the ground we need to develop Spring Hill and significantly strengthens our permitting and approvals pathway and, ultimately, our position for project financing.
“The $6.5 million acquisition is funded from our existing cash reserves, and with the 443 hectare Mining Lease application now lodged, we are positioning Spring Hill to be developed as a single, integrated operation with the room required for long-term infrastructure. This runs in parallel with our ongoing drilling, the updated MRE targeted for December 2026 and the PFS, as we continue to accelerate the development timetable for Spring Hill and deliver value for PC Gold shareholders. We look forward to updating the market on completion.”
In addition to the acquisition, TM Gold has lodged an application with the NT Department of Mining and Energy for Mining Lease 34541 covering approximately 443.15 hectares of new ground, adjoining and expanding the boundaries of its existing Mining Leases at Spring Hill.
Mr Pattison said if granted, the expanded Mining Lease boundary, together with the acquisition, would provide PC Gold with a larger, contiguous area of mining tenure for the development of Spring Hill, including flexibility in the placement of mine infrastructure such as long-term tailings and waste rock storage.
PC2 was down 2.12% to 92.5¢. Mkt cap $296.3M.
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