Matsa Resources strikes deal with Linden Gold Alliance over Devon Gold Mine
Matsa Resources Limited (ASX: MAT) has announced a non-binding agreement with Linden Gold Alliance Limited and its subsidiary, Devon Gold Project Pty Ltd (“Devon”), concerning the Devon Gold Mine Joint Venture Agreement (JVA). This agreement marks a significant move in the Australian gold mining sector.
Agreement Terms and Profit-Sharing Details
Under the agreement, Matsa and Linden will sign a binding agreement within 14 days, effectively terminating the JVA. Matsa will maintain 100% ownership of the Devon Pit Gold Mine, with Linden receiving a net profit share capped at $4 million, derived from future mining operations or the sale of the Devon Pit Gold Mine. The profit share will be calculated as 50% of the quarterly net profit from mining operations after covering all associated costs.
Matsa Resources to retain full ownership of Devon Pit Gold Mine, Linden Gold Alliance to share profits
Management and Resolution of Disputes
Matsa retains the right to manage and deal in the asset, acknowledging Linden’s net profit share. The parties have set a fixed timetable to finalize the JVA, with the binding agreement expected to include specific timeframes to ensure completion. The agreement also stipulates that both parties will release and discharge each other from all liabilities and claims arising from previous disputes under the JVA.
Matsa’s Executive Chairman’s Statement
Matsa Executive Chairman Paul Poli expressed satisfaction with the resolution, stating, “It is pleasing that both Matsa and Linden have reached a commercial solution to the various disputes between the companies over the past few months, and we look forward to working together in the future.”
Future Prospects for Matsa
With the dispute resolution, Matsa can now explore all options to maximize the value from the Devon Pit Gold Mine. All mining information generated during the JVA will be retained by Matsa, offering significant insights for future operations.
This agreement between Matsa Resources Ltd and Linden Gold Alliance Ltd reflects a collaborative approach in the gold mining industry, emphasizing the importance of strategic partnerships and conflict resolution for long-term success in the sector.