TG Metals (TG6) has acquired an 80% stake in the historic Van Uden gold project in Western Australia, which includes four mining leases and past production from two open pits.
The project has existing gold stockpiles, offering near-term cash flow potential through toll treatment. TG6 plans to update the 2013 resource estimate, which outlined 238,000oz of gold, through further drilling and analysis to produce a JORC 2012 compliant resource.
The Van Uden project is located near the Marvel Loch and Edna May gold processing plants, providing access to toll treatment facilities.
There is also significant exploration upside due to shallow mineralisation and potential extensions of known deposits. Past production from the Tasman and Diemens pits totaled 11,142oz of gold.
The acquisition terms include a $2.5 million upfront payment, the issuance of shares worth $1 million, and a deferred payment of $500,000. The deal is expected to strengthen TG6’s position with a strategic, near-term cash flow opportunity and long-term exploration potential.