Alt Resources accelerates Bottle Creek gold project purchase, early stage mining plans
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Special Report: A very attractive $4.5 million funding package allows Alt Resources to fast-track the purchase of the +309,000oz Bottle Creek gold project.
The deal with Melbourne-based Collin Street Value Fund means Alt (ASX:ARS) can now pay off the acquisition well ahead of the November 2020 payment date.
The convertible note (debt that converts into equity) has been struck at very attractive terms.
Alt executive director Andrew Sparke says “This is a strong endorsement of the results the explorer has achieved so far.
“The conversion price of the notes represents a 47% premium to the five day volume weighted average price (VWAP) of the company’s share price prior to today’s announcement,” Sparke says.
“Under the agreement, the company has the right to pay back up to 50% of the notes from the proceeds of a potential toll treatment operation at Tim’s Find that is planned to commence in the first quarter 2020.
“This will minimise equity dilution and maximise returns for Alt’s shareholders.”
Tim’s Find has an existing 30,900oz resource, but maiden drilling in July returned numerous significant intercepts, like 2m at 34.2g/t Au (grams per tonne) inside a larger 4m section grading 17.8g/t Au, just 5m from the surface.
Anything 5g/t and above is generally considered high grade.
Importantly, drilling has actually extended known gold mineralisation 500m beyond the current Tim’s Find resource to the south, Alt says.
The next phase of drilling is underway to expand the Tim’s Find resource and undertake infill drilling at the Shepherds Bush prospect, with the view to delivering new resource upgrade from both project areas in the coming months.
The Bottle Creek mining leases, a key part of the Alt’s 360sqkm Mt Ida Project in WA, already contain 309,000oz gold and 3.78 million ounces of silver in JORC resources.
They were briefly mined for about 93,000oz by a Rio Tinto (ASX:RIO) subsidiary in the late 80s – which means there’s still significant mining infrastructure on site, like tailings storage facilities, fully functioning exploration camp, potable water and communication services.
For Alt, the ultimate aim is to establish a large, long-life gold production hub at Mt Ida.
“We are extremely pleased to have attracted funding to secure the Bottle Creek mining project,” Sparke says.
“This asset is the backbone of the company’s resource base and is pivotal to the company’s mining ambitions.”