Focus Minerals Limited (ASX:FML) Signs Mill Treatment Exclusivity Agreement With Matsa Resources
Perth, Aug 12, 2009 AEST (ABN Newswire) - Australian gold producer Focus Minerals Limited (ASX:FML) is pleased to announce the signing of an Exclusivity Agreement with emerging mining company, Matsa Resources Limited, (ASX:MAT) for the treatment of ore from Matsa's Norseman Gold Project at Focus' Three Mile Hill Plant.
The exclusivity agreement is a precursor to a formal binding agreement which - upon commissioning of Focus' 1.2Mtpa Three Mile Hill gold processing facility later this year - would involve treating ore produced from Matsa's North Scotia deposit in scheduled milling campaigns at Three Mile Hill expected to commence during February 2010.
The agreement, once finalised, will generate valuable revenue for Focus as well as providing high-grade feedstock for Three Mile Hill in its ramp-up to full scale production.
Focus' Chief Executive Officer, Mr Campbell Baird said the agreement with Matsa would provide substantial benefits to both parties: "We are very happy to be in a position to help a fellow junior gold producer realise their production ambition while at the same time generating cashflow for ourselves.
"It's essentially a win-win situation, particularly at such an early stage of our production ramp up utilising any excess capacity. Processing Matsa's high-grade ore will also help with plant efficiency, as the need for utilising Focus' low-grade ore stockpiles will be reduced," he added.
To support a fellow aspiring producer, Focus has also agreed, subject to conditions, to participate in a share placement with Matsa, to the value of A$200,000.
"We look forward to expanding our existing relationship and to continue working with Matsa Resources as we place the necessary foundations to become a significant gold producer in the region," said Mr Baird.
About Focus Minerals Ltd
With over 3.8Moz of Mineral Resource, Focus Minerals Limited (ASX:FML) has a highly strategic portfolio of assets across Australia's two leading gold producing districts – the Kalgoorlie/Coolgardie belt and Laverton – and the financial muscle to continue to unlock further potential for growth.
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