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Mining

Classic Minerals on track with Forrestania gold acquisition and major funding boost

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By Colin Hay - 
Classic Minerals ASX CLZ market update
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Classic Minerals (ASX: CLZ) has confirmed that AuResources continues to progress conditions related to a multi-million dollar funding facility.

It was revealed in late February 2024 that AuResources would initially advance $15.3 million to Classic in support of its Western Australian gold developments.

The terms sheet for the facility also included a provision for the advance of a further $76.5m in five additional tranches of $15.3m.

First transfer made

Chief executive officer Ian Cooper has informed Classic that the Swiss-based fintech has met all necessary requirements to proceed with the facility and has already made a transfer of approximately $100,000 to Classic.

The majority of the funding will support the expansion of Classic’s Kat Gap project and development of the Lady Magdalene and Lady Ada deposits at the Forrestania gold project.

Forrestania acquisition

Classic is on target to finalise its acquisition of the Forrestania gold tenements in WA, with an initial up-front cash payment of $50,000 made to vendor Redivium (ASX: RIL) earlier this month.

The two companies subsequently agreed to extend the completion date of the acquisition to 31 July 2024, allowing Classic additional time to settle payment and finalise closure formalities.

The transaction gives Classic 100% ownership of the Forrestania tenements along with full gold rights.

Mining lease in place

The company successfully applied for a mining lease over parts of the Forrestania tenements in mid-May ahead of its release of a major resource upgrade earlier this month.

The mineral resource estimate upgrade featured a significant increase in indicated resources at both the Lady Ada and Lady Magdalene projects, which host a combined indicated resource of 69,966 ounces and total inferred resources of 227,613oz.

The total indicated resources for Kat Gap and Forrestania sit at 90,454oz.

Classic plans to process ore from the Lady Ada and Magdalene gold deposits at its Kat Gap processing plant.