Mar 12, 2019

Agreement signed for sale of Tick Hill gold mine

Agreement signed for sale of Tick Hill gold mine Diatreme Resources has agreed to sell the Tick Hill gold mine near Mount Isa to Berkut Minerals Limited.

Diatreme Resources has entered into a heads of agreement with Berkut Minerals Limited for the sale of Diatreme’s Tick Hill gold project near Mount Isa.

In an announcement to the ASX, Diatreme said the decision would give its shareholders exposure to Berkut’s Australian gold assets “amid rising Australian dollar gold prices”.

Under the heads of agreement, Diatreme has agreed to the sale of its three related mining tenements and associated mining information to a Berkut nominee.

Upon settlement, Diatreme’s joint venture with Superior Resources Limited at Tick Hill will be terminated.

Diatreme chief executive officer Neil McIntyre said the agreement offered shareholders the potential for further growth in market value at no cost.

“This deal is a win-win for Diatreme and Berkut, giving Diatreme shareholders exposure to Berkut and its promising gold assets in Western Australia and now also Queensland, while allowing us to continue our focus on our key heavy mineral and silica sand projects,” Mr McIntyre said.

“Tick Hill is historically one of Australia’s richest gold mines and with Berkut’s experience in gold exploration, along with rising gold prices, (this) offers great potential to deliver value for the shareholders of both companies.”

Berkut managing director Neil Inwood also welcomed the agreement.

“(It) will cement our gold portfolio in Australia with the highly prospective Tick Hill deposit and surrounds,” he said.

“The gold sector is enjoying rising investor interest due to high prices and solid consumption growth in Asia, and we look forward to exploring these projects as rapidly as possible for the benefit of our shareholders.”