Matsa Resources (ASX:MAT) has signed a memorandum of understanding (MOU) with AngloGold Ashanti’s (ASX:AGG,NYSE:AU) Australian division regarding gold-mining and exploration activities at its Lake Carey project.
The Lake Carey project encompasses Matsa’s Fortitude and Red Dog gold mines, and is also directly adjacent and contiguous with the company’s Red October gold mine.
Notably, AngloGold will receive first option and endeavor to treat all gold ore produced by Matsa within the MOU subject area, subject to ore complying with technical requirements.
In a statement released Wednesday (June 20), Matsa says the non-binding MOU came about due to an “excellent working relationship” between itself and AngloGold.
“Both companies are winners … as it allows Matsa access to facilities and knowledge that has been developed by AngloGold over many years,” Matsa Executive Chairman Paul Poli said in a statement.
“This access will strengthen and increase the ability of Matsa to grow its gold ore resources which in turn may assist AGAA to gain additional ore feed for the Sunrise Dam treatment plant. It’s a ‘win win’ for both companies,” he added.
Matsa’s Lake Carey project is 25 kilometers southwest of AngloGold’s wholly owned Sunrise Dam gold mine, and the MOU will also allow the two companies to share infrastructure like roads, medical facilities and anything considered mutually beneficial. Additionally, the companies will share and discuss exploration and technical information with one another.
The firms have been gradually building their working relationship through Matsa’s Fortitude gold mine. They signed a deal in 2017 for AngloGold to buy all of the ore produced at the mine, with treatment taking place at AngloGold’s Sunrise Dam treatment plant.
Aside from Red October and Lake Carey, Matsa also has its Symons Hill project and Killaloe joint venture in Australia. The company, which has an 80-percent stake in Killaloe, is currently exploring the project’s 94-square-kilometer area for nickel sulfide and gold.
As for Symons Hill, a 96-square-kilometer tenement, the company has found strongly enriched nickel values in the area and is still exploring.
Matsa’s share price closed Wednesday at AU$0.165, while AngloGold’s ended at AU$2.17.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
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