Mt Carrington silver/gold deal terms revised

Investment Memo: TMZ IM

General: Project acquisition

Yesterday our precious metals development investment Thomson Resources’ (ASX:TMZ) announced a revision to its Mt Carrington agreement with White Rock Minerals (ASX:WRM).

The amendment allows TMZ to focus expenditure on advancing the Mt Carrington Polymetallic Project, thereby providing a pathway to earning up to 70% of the project.

Thomson will initially focus on integrating the known gold-silver-zinc-copper mineralisation at Mt Carrington into its Mineral Resource Estimates.

This fits in with our Objective #1 of our 2022 Investment Memo - for TMZ to deliver a total combined resource across its silver deposits of ~100 million silver equivalent ounces. Presently, TMZ sits at ~40.2 million silver equivalent ounces.

The Amended Agreement changes the earn-in structure to now be a 2-stage exploration earn in and option to joint venture whereby Thomson can earn in up to 70% of White Rock’s Mt Carrington project:

• Stage 1 – Thomson earning 51%

Thomson to complete at least $5M in expenditure, by March 2025;

• Stage 2 – Thomson can elect to earn a further 19%:

Thomson to complete at least a further $2,000,000 in expenditure, by March 2027;

White Rock is free-carried through the exploration earn-in period.

TMZ’s CEO David Williams provided some insight on the news yesterday.

Next up, we’re awaiting more resources to be added to the current JORC resource to draw nearer to the 100Moz silver-equivalent goal.