Tombola to Bring Forward Gold Production
Brisbane, Aug 17, 2022 AEST (ABN Newswire) - Tombola Gold Ltd (ASX:TBA) is pleased to announce that it has entered into a Binding Term Sheet with True North Copper Pty Ltd ("True North") for the re-commissioning and shortterm rental of the Great Australian Gold Production Plant ("Plant") owned by True North and located in the Cloncurry region (refer location map at Figure 1*). This development complements the Company's previously announced regional expansion and fast-track production initiatives. Tombola will work toward the commencement of gold production at the Plant within the next 12 weeks, whilst the Company completes the refurbishment of the Lorena facility (refer ASX announcement - 13 July 2022).
- Tombola signs binding term sheet for short term rental of gold processing plant.
- Agreement brings forward first gold production whilst the Lorena Plant is being refurbished.
- First gold production expected within 12 weeks.
The Binding Term Sheet requires Tombola to fund the cost of refurbishing the Plant, which is expected to cost up to $500,000, whilst True North is responsible for obtaining all authorities required, including environmental, and supplying the Senior Site Executive. The Company will then lease the refurbished Plant from True North for a period of 6 months at a cost of $110,000 (plus GST) per month, and provide the operational personnel and meet the operational running costs of production. The parties can extend the arrangement for a further 3 months by mutual agreement.
The Company is planning to process ore from the current mining operations at the Golden Mile for the production and sale of gold bullion to the Perth mint during the period of these arrangements.
Tombola Managing Director, Byron Miles, commented:
"We are pleased to have entered a Binding Term Sheet with True North as a further step in the process of fulfilling our promise to the market of becoming a meaningful gold producer this year. This initiative allows Tombola to continue to optimise its operations to secure a long future of gold processing in the Cloncurry region."
Completion of the transaction is subject to mutual conditions precedent associated with the scope of works for the refurbishment of the plant, and the execution of legal agreements within 30 days.
*To view tables and figures, please visit:
About Tombola Gold Ltd
Tombola Gold Ltd (ASX:TBA) is a company assembled by experienced, exceedingly well-qualified and all very well rounded team members that have previously floated exploration companies which achieved major resource discoveries and success. Between the Tombola team members, Tombola as a company have well over 100 years of accumulated experience in the mining, exploration and resource sector. Tombola principal objective is to acquire assets to explore for and develop a large IOGC or porphyry deposit funded by low-risk gold production resources. To that end, Tombola has a license covering 970 sq km prospective for gold/copper in the Mount Bryan-Red Banks-World's End area near Burra in South Australia; with strategic agreements with Queensland Mining Corporation.
Tombola Gold Ltd