Evolution Mining and Emmerson Resources are set to restructure their Tennant Creek Mineral Field (TCMF) joint venture in the Northern Territory.
The two companies formed the TCMF JV in July 2014 to fast-track the discovery and development of the gold and copper deposits within Emmerson’s 100 per cent owned tenements in the area.
However, the JV today announced that a new ownership structure has been proposed to reflect the “differing size and corporate objectives” of the two companies.
Evolution will relinquish its right to a 65 per cent interest in the entire JV area under the new proposal. Instead, the miner will take 100 per cent ownership of the area that contains the Gecko, Goanna and Orlando copper-gold prospects.
Emmerson, meanwhile, will retain exploration rights to 94 per cent of the previous JV area, according to the new proposal.
It will also keep hold of all gold-dominant projects, small mines and associated exploration ground, and total ownership of a Tribute Mining Agreement at the Edna Beryl mine.
Production was launched from the Tribute area of the Edna Beryl mine in December 2017. Since then, the JV has advanced plans for commercial production from this part of the mine, including full scale mining and processing.
Evolution vice-president, discovery, and chief geologist Glen Masterman said it became clear that the company’s strategic imperatives weren’t aligned with Emmerson’s as the JV looked to move to the next phase of exploration at Tennant Creek.
He added that a subdivision of the ground holding, as proposed, would allow both parties to take a 100 per cent interest in their preferred prospects.
“This is a smart outcome for both parties. We remain a significant shareholder of Emmerson and with them success with their ongoing exploration,” Masterman said.
Emmerson managing director Rob Bills said the proposed restructure better aligned the assets with the respective companies.
“Importantly, the investment in new data during the term of the JV has provided new insights into what we believe is a new generation of high-grade, hematite-hosted gold deposits,” Bills said.
“Directly leading to discoveries at Edna Beryl West, Mauretania and a strong of promising drill intercepts that will now be followed up.”