The Torian Resources Ltd (ASX: TNR) share price is rising today after the company acquired a huge swathe of pastoral land called Tarmoola Station with a small mining business in Western Australia.
The Torian share price is up 8.89% to 4.9 cents at the time of writing.
Torian is a microcap gold mining company involved in various mining and exploration projects, including Zuleika, Mt Stirling, Malcolm, Bardoc, Gibraltar and many more.
Image source: Getty Images
Torian's Tarmoola station and Carhill Contracting acquisition
Torian announced today that it's bought a 172,662 hectare (424,748 acre) property at Tarmoola Station, along with the mining business located on the station — Carhill Contracting. .
Torian said the acquisition is to "help fast track further exploration and potential mining operation" at its Mt Stirling Gold Project. Tarmoola Station is 50% covered by mining and exploration leases, however some of these are abandoned.
Carhill has a cumulative free cash flow of ~$1,000,000 per annum (unaudited). The property acquisition provides Torian with a huge amount of property and subsequent resources in the area around Leonora, far inland on the border of the Australian spring reserves.
The deal includes $876,000 of equipment (independently valued), and ongoing contracts with regional miners and explorers. It also includes the rights to continuing carbon credits valued at approximately $360,000 per annum, approximately 1,100 head of cattle and a 20-person camp.
The camp includes $279,600 of independently valued hard assets with approvals in place and infrastructure built to upgrade to a 50-person camp with associated mess and kitchen facilities.
Torian management comments
Torian executive director Peretz Schapiro explained how the deal could benefit the company's gold mining operations.
Our recent site visit has confirmed our convictions that moving ahead with purchasing the station fits very nicely with our long-term strategic goal of solidifying our land holding in the Leonora region as we progress with further exploration of the Mt Stirling Gold Project and potential mining operations. As owners of the pastoral lease we will be able to reduce our discovery cost per ounce and ensure that the process of obtaining permits for our exploration and potential future mining activities, is as seamless as possible.
The purchase of the Tarmoola Station is therefore seen as a crucial step towards fast-tracking the exploration of and potential mining production at the Mt Stirling Gold Project.
Torian share price snapshot
The Torian share price is up 67% so far in 2021 and 187% over the past 12 months.
