Ora’s CEO, Alex Passmore, commented: “We are very pleased to announce the Westgold Strategic Alliance and Placement, which provides a short and tangible pathway to production and cash flow from Crown Prince. Ora and Westgold will work collaboratively over the next few months to define the development timetable. This alliance with a large regional operator with extensive processing infrastructure gives us strong confidence in the potential for future economic extraction of other advanced projects within our tenure.
STRATEGIC ALLIANCE
Upon completion of the Strategic Placement, Ora and Westgold agree to enter into a strategic co-operation relationship. The primary aim of the Strategic Alliance will be to advance the development of Ora’s Crown Prince deposit (Crown Prince) into production and any other mining opportunities within the Ora tenure.
As part of the Strategic Alliance, Ora and Westgold will use their best endeavours to agree the terms of a proposed ore purchase agreement, to be agreed and detailed in a separate document negotiated between the parties (OPA). A key term of the OPA will include Ora granting to Westgold a right of first refusal in respect of the future purchase of all ore produced from any tenements owned by Ora (as at the time of the Strategic Placement settlement), to be processed at Westgold’s Bluebird Mill at Meekatharra (Bluebird).
Crown Prince hosts a Mineral Resource of 240koz at 4.1g/t Au1 and is located on a granted Mining Lease with a Native Title Agreement in place. The deposit is located approximately 33km northwest from Bluebird and is easily accessible just off the Meekatharra-Mt Clere public road and the Great Northern Highway, supporting efficient haulage logistics (refer Figure 1).
In addition to the OPA, the Strategic Alliance may also encompass other strategic collaboration initiatives to be agreed on a best endeavours basis such as access to Westgold’s camp and associated facilities and leveraging Westgold’s internal resources and intellectual property to fast track the development of Crown Prince.
Upon completion of the Strategic Placement, Westgold will also have:
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