Moho Resources Ltd (ASX:MOH) has signed a Heads of Agreement (HOA) with Odin Metals Ltd (ASX:ODM) to acquire the remaining 30% of a mining lease on Silver Swan North Project in Western Australia, which includes the highly prospective and mineralised East Sampson Dam gold prospect.
Termination of the joint venture with Odin on mining lease M27/263, which will provide Moho with 100% of the project, simplifies the management of technical programs and removes budget constraints.
The company also welcomes Odin as a substantial shareholder to the register at completion of the agreement and looks forward to Odin’s continued support.
Managing director Shane Sadleir said: “Moho looks forward to accelerating exploration at the Silver Swan North Project, in particular the next drill programs, associated mining studies and metallurgical test work at the East Sampson Dam prospect.”
Location of M27/263 in relation to regional geology of Silver Swan North Project.
RC drilling to begin
Acquisition of the remainder of M27/263 enables Moho to expedite exploration and mining studies under its own management.
The company expects to shortly begin its next round of reverse circulation (RC) drilling at East Sampson Dam to infill and extend the existing zone of mineralisation.
This campaign is expected to build on the significant gold results achieved in the company’s last RC drill campaign announced in February 2020.
Towards potential production
M27/263 forms part of Moho’s Silver Swan North Project, which is 50 kilometres north of Kalgoorlie and close to established mine infrastructure and gold processing facilities.
The granted mining lease covers several auger geochemical anomalies including the highly mineralised East Sampson Dam prospect.
Moho recently intersected high-grade gold in reverse circulation (RC) drilling at the East Sampson Dam prospect and has started mining studies towards a potential gold production scenario.
The key terms of the acquisition are:
- Moho to pay Odin $120,000 in cash within 30 days of signing;
- Odin to be issued 4.5 million fully paid ordinary shares in Moho at a deemed issue price of 6.5 cents per share, subject to shareholder approval at an EGM to be convened shortly and held within 60 days of signing; and
- Moho to grant Odin a net smelter royalty of 0.5% on minerals, mineral products and concentrates, produced and sold from the tenement.
Published at Mon, 22 Jun 2020 01:26:00 +0000-Moho Resources to acquire remaining 30% of East Sampson Dam gold mining lease