Emmerson Resources has formed a partnership with NT Bullion to boost the Northern Territory’s gold mining prospects in the Tennant Creek area.
An investment of $2 million worth of Emmerson shares (14 cents per share) was provided by NT Bullion under the partnership.
The two companies will now aim to discovery new deposits and extensions to existing gold, cobalt and copper projects.
These projects include Mauretania, Jasper Hills, Hermitage, Golden Slipper, Marathon and Troy — all of which are located in the Northern Project area (NPA) at Tennant Creek.
NT Bullion has a strong local presence in the Northern Territory, with 45 per cent of the company owned by local indigenous investors.
The strategic alliance will also see NT Bullion fund the next $5 million of exploration for the two companies.
Plans for construction of a gold processing plant in Tennant Creek were already underway by NT Bullion, with the new alliance extending the exploration area by 1600 square kilometres under Emmerson.
Emmerson managing director Rob Bills said the partnership will drive up the local Tennant Creek economy.
“We welcome NT Bullion as a new shareholder and partner at Tennant Creek following the formation of this new strategic alliance.
“This multifaceted deal over the Northern Project Area augments the existing alliance with Territory Resources over the Southern Project Area and is another boost for the local Tennant Creek economy.
“The exploration JV sees Emmerson remain the operator and manager plus retain the ownership of the underlying leases during the $5 million earn-in by NT Bullion.
“The premium paid by NT Bullion for their Emmerson shares reflect both their confidence in the future success of the strategic alliance as well as their acknowledgement of the proprietary knowledge and relationships that Emmerson hold in relation to the Tennant Creek Mineral Field.”
NT Bullion chief executive officer Rod Illingworth said the partnership highlights the potential of gold mining in the Northern Territory, while opening up opportunities to expand the state’s long-term growth in the mining industry.
“With our Indigenous shareholders and employees, NT Bullion will continue to work with communities, industry and government to build a long term sustainable local business in the Territory,” he said.
“This is significant investment for the Territory and highlights the real potential of the gold deposits in the Tennant Creek region.”