Restructuring paves way for Titan to complete $15m sale of non-core assets
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Titan can now finalise the divestment of its non-core Zaruma mine and Portovelo process plant after completing a restructuring of its Ecuadorian operations.
The restructuring allows the company to focus on completing the drill program at its flagship Dynasty gold project that will allow it to deliver the first JORC resource.
Under the restructuring, Titan Minerals (ASX:TTM) transferred all 55 mining concessions that make up the Dynasty, Copper Duke, Linderos, Copper Fields and Jerusalem projects as well as the Zaruma Mine into a wholly-owned subsidiary company.
These concessions cover 55,587 hectares and are predominantly registered for small scale mining with just two registered for exploration only.
“Completion of the restructuring of the Ecuadorian operations is a major achievement and significant milestone for Titan,” managing director Laurie Marsland said.
“We look forward to finalising divestment of the Zaruma Mine and Portovelo process plant in the near term and focussing our attention on completing the drill programme at Dynasty that will enable Titan to deliver the first mineral resource estimation reported under the JORC Code.”
In April, Titan agreed to sell the non-core Zaruma Mine and Portovelo process plant to Pelorus Minerals for US$15m ($19.4m) in staged payments and a 2 per cent net smelter return royalty on future copper production.
Proceeds from the sale are expected to be used to develop Dynasty and explore the Copper Duke project.
The company is currently carrying out 12,000m of drilling at Dynasty to evaluate key features highlighted in recent airborne geophysics.
Mineralisation is open at depth at Dynasty, and 90% of the mineralised intercepts in the existing foreign resource estimate of 2.1Moz gold are within 100m of surface.
This article was developed in collaboration with Titan Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.