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Tectonic Gold plc (TDIM:TTAU) has announced the successful completion of the sale of its remaining interest in South African diamond and heavy minerals projects to its joint venture partner, Kazera Global PLC (AIM:KZG). This strategic move aligns with Tectonic's renewed focus on its Australian gold projects.
Strategic Divestment and Equity Stake
Tectonic Gold has sold its 10% residual holdings in Deep Blue Minerals Pty Ltd and Whale Head Minerals Pty Ltd, including the Black Economic Empowerment loan interest. The total consideration for the sale includes a cash payment of $150,000 (£117,000) and 27,110,947 shares in Kazera. This divestment allows Tectonic to retain an indirect interest in the South African projects through its equity holding in Kazera. The shares received as consideration will be subject to a six-month lock-in period, during which Kazera anticipates commencing initial production.
The equity component of this transaction is pending shareholder approval. However, Kazera's directors and insiders have committed to supporting the transaction, making approval highly likely.
Progress in Australian Copper/Gold Joint Venture
Tectonic Gold's joint venture with Amerod Resources (ASX: WEC White Energy Corporation Ltd) in Queensland is advancing well. Over the first half of the year, White Energy has conducted successful exploration activities. These efforts have identified promising copper targets south of the original Specimen Hill gold discovery, specifically in the areas of Southern Copper, Mt Fane, Bullseye, and Mt Walturn. A drilling program is now being prepared to further explore these mineralized zones.
New Acquisition Opportunities in Western Australia
Tectonic Gold is also making strides in Western Australia, where it has evaluated and entered negotiations to acquire a portfolio of advanced gold assets. These assets include shallow extensions to historic open-pit mines and a significant tailings stockpile. Modern gold recovery technologies have made it feasible to extract gold left behind in the original mining processes. This can be achieved through simple chemical leaching in concrete vats.
The Western Australian projects are situated in a well-known goldfield with substantial production from neighboring mines. This proximity to operating mines provides a strategic advantage, as these operations are potential buyers for additional resources to supplement their existing production.
Ongoing Projects and Future Plans
In addition to its new ventures, Tectonic Gold continues to hold the Mt Cassidy intrusive-related gold system project in Queensland. Located along strike from the renowned Mt Morgan copper/gold mine, Mt Cassidy has not undergone modern drill testing since its rediscovery by Tectonic. The Queensland Government has waived license fees for this project, and Tectonic is considering either drill testing or farming out the project in a similar manner to Specimen Hill.
