Perth-based European Cobalt is ready to snap up the gold-focused business responsible for restarting Charters Towers’ Blackjack processing plant.
The company has entered an exclusive option agreement with the shareholders of Maroon Gold to acquire 100 per cent of its issued capital.
European Cobalt describes the proposed acquisition as transformational.
“Maroon Gold has established a high-quality portfolio of near-term development assets combined with the requisite processing infrastructure to capitalise on the strong gold price environment,” European Cobalt managing director Glenn Baldwin said.
Maroon Gold holds a resource base of 250,000 oz of gold and European Cobalt now plans to ‘rapidly’ determine the feasibility of developing those resources.
Maroon Gold, a private equity backed vehicle, achieved its first gold pour early this year after a $5 million project to refurbish and modernise the Blackjack processing plant at Charters Towers.
It was initially feeding the plant with ore from Far Fanning – one of a cluster of gold projects Maroon Gold holds in the Charters Towers region.
Others include the Great Britain deposit on the outskirts of Charters Towers, Granite Castle, and a dozen mining leases around the Blackjack plant – where high-grade production dates back to the early 1900s.
Maroon Gold has also been mining and processing high-grade gold material from Laneway Resources’ Agate Creek gold project, near Kidston
European Cobalt is looking for more tribute mining and processing opportunities in the region.
It also plans to conduct a processing expansion study to define the scalabilty of the existing plant and infrastructure.
Subject to the completion of the transaction and shareholder approval, European Cobalt proposes to change its name to Mojo Minerals.