16th Jul 2015 11:04
LONDON (Alliance News) - Greatland Gold PLC Thursday said it has terminated a deal signed with Unity Mining Ltd back in 2011 concerning the Firetower gold project in northern Tasmania.
In October 2011, Greatland signed a farm-in agreement with Unity, whereby Unity could earn up to a 75% stake in the project by spending a minimum amount of AUD7 million over a five year period.
However, five years on and Unity has informed the company it has only spent a total of AUD1.84 million on the project since the deal was signed, which is substantially below the required amount to earn an interest.
As a result, Greatland Gold has terminated the deal and will retain a 100% interest in the project and will resume management of the project.
"Greatland retains 100% of the Firetower licences which offer exciting opportunities for gold and base metals and we have the benefit of Unity's expenditure over recent years. Unity's work was carried out was to a high technical standard and we wish them all the best in their future endeavours," said Chief Executive Callum Baxter.
Greatland shares were flat at 0.130 pence per share on Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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