PERTH (miningweekly.com) – Gold miner Silver Lake Resources has waived its pre-emptive right over the proposed Cannon gold project, in Western Australia, allowing project owner Southern Gold and ASX-listed Metals X to proceed with project development.
In August this year, Southern Gold and Metals X executed a mine finance and profit share term sheet over the Cannon project, which would see Metals X provide funding and technical expertise to mine the resource.
The agreement triggered a pre-emptive right held by Silver Lake to match or better any third party offer over the Cannon project, or to purchase the mining lease.
Southern Gold MD Nanette Anderson said on Monday that with the waiving of the pre-emptive right, the company now had a clear pathway to make the transition from gold explorer to producer.
“Importantly, Metals X has agreed to provide us with pre-development funding, which, in turn, minimises dilution of existing shareholders in the current market environment.”
Anderson said that coupled with Southern Gold’s recent progress in securing some key regulatory approvals and an improving gold price environment, the signing of the term sheet placed the company in a strong position to press ahead with development.
The Cannon project was expected to have a mine life of some 36 months and would deliver a total of 68 200 oz of gold.