Titan divests non-core assets, looks to high impact gold drilling campaign
Freeing it up to focus on its key Ecuadorian assets, Titan Minerals Ltd (ASX:TTM) has come to an agreement to divest of its non-core assets in Peru.
Titan has agreed to dispose of the right to acquire the Coriorcco and Las Antas mineral claims located in Peru, to Western Pacific Resources Corp. (TSX-V: WRP), subject to the satisfaction of certain conditions, and sell the Vista Gold Plant to AC 081 S.A.C, a private investment group with a long history of successful toll milling in Peru.
Titan is to receive total consideration upon completion of the divestment of US$6,440,000, including US$5,150,000 cash. If Western Pacific exercises the option to acquire a 100% interest in the Coriorcco property, Titan will be granted a 1% Net Smelter Return (NSR).
The sale, a part of a strategic review of its consolidated operations, will allow Titan to focus on the development of its flagship Dynasty Gold Project and the Copper Duke Project in Ecuador.
Having recently completed a capital raise, the company continues to revive exploration activity at the Dynasty Gold project and the nearby highly prospective Copper Duke Gold-Copper porphyry project.
Dynasty is an advanced stage exploration project located in the Loja Province of southern Ecuador currently hosting a 2.1Moz Au foreign resource estimate averaging 4.5g/t gold reported in compliance with Canadian NI 43-101 standards.
Titan reported assay results in July for diamond drilling completed at the Dynasty Gold Project that further support an emerging large-scale gold system and extend known mineralisation that remains open in multiple directions and at depth.
The commencement of drilling will be a key catalyst in the near term for better defining mineralisation at Titan’s flagship Dynasty Gold Project.
Commenting on the divestment, Titan Minerals Managing Director, Laurie Marsland said, “Titan’s primary focus remains firmly set on developing the Dynasty Gold Project and the Copper Duke Project in Ecuador. This divestment will support that objective whilst retaining exposure to both the Coriorcco and Las Antas projects.
“The funds received will contribute toward completion of the high impact drilling campaign at the Dynasty Gold Project, the airborne geophysical surveys for high resolution magnetic coverage and significant surface sampling programs, all of which support conversion of the substantial NI 43-101 Resource to a JORC Code compliant Resource in late 2020.”