MATSA SECURES A$101M DEAL WITH ANGLOGOLD ASHANTI

Agreement Grants AngloGold Ashanti Option to Acquire Majority of Lake Carey Gold Project

Matsa Resources Limited (ASX:MAT) has executed a Tenement Option Agreement with AngloGold Ashanti Australia Ltd, giving the global mining company the option to acquire the majority of Matsa’s Lake Carey Gold Project near Laverton, Western Australia, for A$101 million. The deal is subject to the satisfaction of certain conditions precedent and assumes a gold price of A$4,500 per ounce.

Matsa will retain key assets, including the Devon Pit Gold Mine, the Fortitude North Project, and the Red October Accommodation Village, along with associated tenements.

The financial terms of the agreement include:

A non-refundable option fee of A$8 million, including A$5 million subject to conditions precedent.
A payment of 1.875% of the gold price multiplied by an agreed resource of 936,000 ounces at the time of exercise, less A$6 million already paid, within 18 months of satisfying conditions precedent (equivalent to approximately A$73 million at A$86.81 per ounce).
A deferred consideration of up to A$20 million based on JORC Resources discovered by AngloGold Ashanti post-acquisition, calculated as 1% of the gold price at the time.

Matsa Executive Chairman Paul Poli commented:

This transaction is the culmination of negotiations over the past 12 months with AngloGold Ashanti and I am thrilled with this outcome. To attribute a value of approximately A$101M to the Lake Carey Gold Project speaks volumes for the exploration potential of this project. Not only that, Matsa retains the highly valuable, near-term production Devon project, Red October Accommodation Village and what I consider to be a very exciting exploration project in Fortitude North where recent drilling highlighted its potential.

This transaction has been a long time in the making. I would like to thank AngloGold Ashanti and their team for the way in which the negotiations were conducted. To have a party of the ilk of AngloGold Ashanti speaks to the true potential value of Matsa’s assets and has attributed a ‘see through’ value in excess of A$85 per resource ounce based on the current market gold price.

I believe shareholders can now have a better understanding of the value of Matsa and what that now means for them and in the future.