ODY resource Update Triggers $1.25 million Payment to MMY
ORIGINAL: Monument Notified by Odyssey of Major Milestone Delivery at Tuckanarra Gold Project
2023-08-03 09:00 ET - News Release
VANCOUVER, British Columbia, Aug. 03, 2023 (GLOBE NEWSWIRE) -- Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) ("Monument" or the "Company") is pleased to announce that it has been notified by Odyssey Gold Limited (“Odyssey”, ASX: ODY) that a major milestone has been achieved according to Odyssey’s recent resource statement at Tuckanarra Gold Project where Monument holds 20% free carrying interest.
Maiden Tuckanarra Project Mineral Resource estimate (MRE) totals 5.32Mt @ 2.2g/t Au for 376koz (above a 0.9-2.0g/t Au cut off). The estimate is prepared by Independent Competent Persons, Snowden Optiro, BMGS and International Resource Solutions in accordance with JORC principles and guidelines (2012 Edition).
CEO and President Cathy Zhai commented, “We are very pleased to hear this good news. It is encouraging as Tuckanarra exploration may provide Monument the opportunity to have future ore produced by ODY to be fed into the Burnakura gold processing plant, as well as it increases the upside value of Monument’s holdings in this project.”
Pursuant to the joint venture arrangement between Monument and Odyssey, an AUD$1,000,000 contingency cash payment may become payable to Monument within 36 months of completion of the acquisition, conditioned upon the delineation of an independently assessed mineral resource in accordance with the JORC Code (2012 Edition) of at least 100,000 ounces of gold at a minimum resource grade of 1.55g/t in relation to Tuckanarra Gold Project (the “Milestone Performance Consideration”).
At the time the 80% of Tuckanarra Gold Project sold to ODY, it contained a historical indicated resource of 1.04 mt @ 1.65 g/t Au for 55.2 kOz and a historical inferred resource of 0.92 mt @ 1.51 g/t Au for 44.6 kOz within eleven separate prospects, determined by Ravensgate in its November 2012 “Independent Resource Model Report” according to the JORC guidelines 2004.
The Company and Odyssey have agreed to defer the Milestone Performance Consideration Payment (the “Performance Payment”). Under the amended arrangement the AUD$1 million Performance Payment shall be made on the date within six (6) months after the date of satisfaction of the Milestone, which would be by February 2, 2024.
In consideration for the deferral of Performance Payment, Odyssey agrees to pay Monument interest on the outstanding Performance Payment amount at a rate per annum equal to the US Secured Overnight Financing Rate (SOFR) plus two percent (2.00%) compounding monthly on and from the date which is 5 business days after the satisfaction of the Milestone, until the Performance Payment is made.
( Approx $1.25 million )
Monument has reserved the right to call back the Performance Payment any time with 14 days’ notice at its sole discretion five days after the date of satisfaction of the Milestone Performance.
About Monument
Monument Mining Limited (TSX-V: MMY, FSE: D7Q1) is an established Canadian gold producer that 100% owns and operates the Selinsing Gold Mine in Malaysia and the Murchison Gold Project in the Murchison area of Western Australia. It has 20% interest in Tuckan