Tombola secures $500,000 pre-payment on first gold sale

Tombola is poised to receive about $500,000 from the pre-sale of the first 200oz of gold to be poured from the leased Great Australia Mine Plant.

While the agreement with Ilwella Pty Ltd – one of the company’s substantial shareholders – represents just a small part of the expected first pour, it marks an important milestone in its transition from explorer to producer.

The pre-sale deal comes as Tombola Gold’s (ASX:TBA) refurbishment of the GAM plant nears completion with first gold pour expected in the coming weeks.

Gold production is expected to increase substantially in 2023 after it brings the VATS and the Lorena CIL plant online.

“We are extremely excited to have achieved first cash flow of approximately half a million Australian dollars, from the presale of a small proportion of Tombola’s first gold pour,” managing director Byron Miles said.

“With the GAM Plant refurbishment nearing completion, this presale demonstrates confidence as the company moves from an explorer to producer.

“This marks a substantial milestone for Tombola and directly aligns with our strategy of becoming a significant Australian gold producer.”

Growing gold producer

The company is currently completing the refurbishment of the GAM plant that it is leasing from True North Copper for a six-month period at a cost of $110,000 + GST per month.

Gold production from the VATS, which is expected to lower the all-in sustaining cost, is expected to begin mid-2023 as the lease on GAM ends.

This will be bolstered by the 300,000tpa Lorena CIL plant, which is currently undergoing work to bring it back into operational status.

This article was developed in collaboration with Tombola Gold, 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.