Gold explorer Focus Minerals has extended its lock-out agreement with Intermin Resources for the sale of its Coolgardie gold project in Western Australia.
Focus and Intermin will use the three-month extension to finalise their formal documents and secure all regulatory approvals for the $40 million proposed transaction.
Both parties remain “fully committed” to completing the sale, but they noted that there was no assurance it would proceed.
The Coolgardie project, which covers 235 square kilometres of greenstone belt west of Kalgoorlie-Boulder, has a significant amount of open cut, underground and operational infrastructure.
This proposed sale includes a 1.2-million-tonne-a-year Three Mile Hill processing plant, which is under under care and maintenance.
Focus considers the Coolgardie project to be a “natural fit” with the company’s acquisition of MacPhersons Resources in December last year.
Should the acquisition go ahead, Intermin will incorporate the Coolgardie project into its consolidated feasibility study (FS).
The FS will evaluate Focus’ potential refurbishment of Coolgardie’s Three Mile Hill processing plant and associated infrastructure, and is due for completion in the March quarter of next year.
Focus will, meanwhile, “concentrate on advancing its Laverton project in the north eastern goldfields at a time of record Australian dollar gold prices,” according to Intermin managing director Jon Price.