Tombola Gold have signed formal agreements to fully acquire the open-cut Lorena gold and copper mine along with its processing facility and leases nearby its Cloncurry operations in outback Queensland.
The move secures the explorer’s position to soon emerge as a regional-level producer.
With cash flow and reserves on hand, the Queensland-based company opted to bring production into the short term and synthesise Lorena with its nearby Mt Freda and Golden Mile projects to form an expansive complex.
Map of Lorena and current Queensland tenements.
The company said it had taken a pivotal step towards becoming a meaningful Australian gold producer.
“[This] not only allows Tombola to increase gold production as well as undertake gold-optimisation planning studies, but now we will have the capacity to treat various ore bodies with gold and copper,” managing director Byron Miles said.
“We have added a substantial asset to the balance sheet, allowing Tombola to expand faster and minimise dilution for shareholders.”
Also, having acquired five project sites from True North Copper in the region, Tombola expects numerous updates from its exploration pipeline.
TBA’s Australian Stock Exchange-listed share price has risen 2.86 per cent today, selling at 3.6c (10.00 pm UTC+ 8 hours).