- Strategic Infrastructure Sharing Agreement signed with Legacy Iron Ore (ASX: LCY) at Second Fortune Gold Mine
- Agreement to commence in November 23 and span an initial 20-month term
- Infrastructure to be shared under the agreement includes:
- Accommodation camp
- Medical facilities
Linden Gold Alliance Limited (“Linden” or “LGA”) is pleased to announce a Strategic Infrastructure Sharing Agreement (Agreement) has been entered with Legacy Iron Ore Ltd (ASX: LCY) over infrastructure at the Second Fortune Gold Mine near Laverton in Western Australia.
Infrastructure to be shared between Linden and Legacy at the in-production Second Fortune Gold Mine includes its camp, airstrip and medical facilities.
Under the Agreement, Linden subsidiary, Second Fortune Gold Project Ltd (SFGP), will provide Legacy with accommodation and related services, as well as access to the airstrip at the mine.
Legacy will pay SFGP $2.5m in October 23, as an upfront payment, with Linden to pay for all operational costs associated with the camp and airstrip.
Legacy owns the South Laverton Gold Project in the Laverton Tectonic Zone, which includes its flagship Mt Celia gold asset, as well as the Yerilla, Yilgangi, Patricia North and Sunrise Bore prospects. The Mt Celia Gold Project is located 10km from the Second Fortune Gold Mine.
Linden Gold Alliance Managing Director, Andrew Rich commented,
“This Strategic Infrastructure Sharing Agreement with Legacy Iron Ore is an excellent outcome for Linden Gold. It allows Linden to realise monetisation of the currently under-utilised capacity of the airstrip and camp, whilst delivering a non-dilutive cash injection into the business. We look forward to partnering with Legacy Iron Ore at the Second Fortune Gold Mine in what is a win-win agreement for both companies.”
Summary of the Agreement
Following signing of the Agreement, Legacy will receive the following:
- Accommodation – 35 guaranteed rooms, as well as additional rooms as requested
- Meals – daily catering
- Wet Mess / Retail Services – Provision of tavern and retail products for sale to residents.
- Fully equipped air-conditioned gym
- Self-service laundry
- Male and female changerooms
- High-speed Wi-Fi internet and the provision of all other outgoings and utilities
- Camp and Airstrip maintenance and management
About Second Fortune
Linden Gold operates the Second Fortune underground gold mine near Laverton, having built and recommenced mining operations and gold production at the operation within seven months of its acquisition. The Company’s progress has allowed it to capitalise on the strong Australian gold price environment and generate positive operational cash flows. Since the commencement of production in April 2021, Linden Gold has produced more than 41koz of gold at 3.7g/t.
In 2023, Linden also completed an exploration program which returned encouraging results from its priority targets at the Second Fortune North pit and Alawa-Cuckoo Hawk prospect, located 2km from the Second Fortune Gold Mine.
Read the full announcement.