Matsa Resources has executed a Memorandum of Understanding (MOU) with AngloGold Ashanti Australia Ltd (AGAA) which will greatly benefit Matsa’s gold mining and exploration activities throughout the extensive Lake Carey gold project which includes the Fortitude, Red Dog and Red October gold mines. Lake Carey is a salt lake located in the Goldfields-Esperance region of Western Australia.

Key aspects of the MOU include AGAA to receive first option, and endeavour to treat all gold ore produced by Matsa within the MOU area subject to ore complying with technical requirements.

Both parties are to enter a separate technical data sharing agreement under which exploration and other technical information is to be shared and discussed, subject to confidentiality provisions.

There will be sharing of infrastructure including airport, roads, medical and other facilities where mutually beneficial.

A model access agreement is to be used in all instances of overlapping tenements, in particular miscellaneous licences for haul roads etc. which will streamline the grant process within the MOU area.

There is a commitment to work together openly, fairly and in a mutually beneficial way.

This non-binding MOU is the outcome of the excellent working relationship established between Matsa and AGAA over the last two years and in particular during the Fortitude trial mine which ultimately underpinned the economic viability of that recently completed operation.

The MOU covers a very large area including Matsa’s Lake Carey and Red October gold projects and AGAA’s Lake Carey and Sunrise Dam operations in the Lake Carey district as shown in the figure.

Executive Chairman Paul Poli said “This agreement represents a massive increase in potential and boost in credibility to Matsa’s Fortitude, Red October and Red Dog mines within the stated area of interest. Matsa and AngloGold have developed a strong working relationship with each other and this MOU strengthens that relationship to help identify and develop new gold deposits to both party’s benefit. Both companies are winners with this cooperation as it allows Matsa access to facilities and knowledge that has been developed by AngloGold over many years. This access will strengthen and increase the ability of Matsa to grow its gold ore resources which in turn may assist AGAA to gain additional ore feed for the Sunrise Dam treatment plant. It’s a ‘win win’ for both companies. I applaud AGAA for their professional approach to working collegially with a junior partner and working towards a rewarding relationship for both companies.”