Titan Minerals Ltd (ASX:TTM) this week came to agreement to divest its non-core assets in Peru.
In doing so, the company is now freed up to focus on its key Ecuadorian assets, including the development of its flagship Dynasty Gold Project and the Copper Duke Project in Ecuador.
Dynasty is an advanced stage exploration project located in the Loja Province of southern Ecuador currently hosting a 2.1Moz Au foreign resource estimate averaging 4.5g/t gold reported in compliance with Canadian NI 43-101 standards.
Titan reported assay results in July for diamond drilling completed at the Dynasty Gold Project that further support an emerging large-scale gold system and extend known mineralisation that remains open in multiple directions and at depth.
The commencement of drilling will be a key catalyst in the near term for better defining mineralisation at Titan’s flagship Dynasty Gold Project.
The agreement to dispose of the right to acquire the Coriorcco and Las Antas mineral claims located in Peru, to Western Pacific Resources Corp. (TSX-V: WRP), subject to the satisfaction of certain conditions, and sell the Vista Gold Plant to AC 081 S.A.C, a private investment group with a long history of successful toll milling in Peru, will free up time and funds.
Titan is to receive total consideration upon completion of the divestment of US$6,440,000, including US$5,150,000 cash. If Western Pacific exercises the option to acquire a 100% interest in the Coriorcco property, Titan will be granted a 1% Net Smelter Return (NSR).
Commenting on the divestment, Titan Minerals Managing Director, Laurie Marsland said, “Titan’s primary focus remains firmly set on developing the Dynasty Gold Project and the Copper Duke Project in Ecuador. This divestment will support that objective whilst retaining exposure to both the Coriorcco and Las Antas projects.
“The funds received will contribute toward completion of the high impact drilling campaign at the Dynasty Gold Project, the airborne geophysical surveys for high resolution magnetic coverage and significant surface sampling programs, all of which support conversion of the substantial NI 43-101 Resource to a JORC Code compliant Resource in late 2020.”
Titan looking to increase JORC by year’s end
On top of funds received from the divestment, Titan recently completed highly sought after capital raises: $12.5 million in a high demand placement followed by a $2 million Share Purchase Plan that had to be scaled back. Applications totalled in excess of $4.5 million, indicating some significant pent up demand.
With a fresh $14.5 million in funding, the company is ready to deploy the cash on its flagship Dynasty Gold Project in the underexplored Loja Province of Ecuador.
This project is close to existing infrastructure, has strong local support and the company is fully permitted to begin work here.
This $97M capped Titan has a clear mission over the coming months at Dynasty.
Its goal is to convert its 2.1 million ounce Foreign Resource Estimate averaging 4.5 g/tonne gold, into a much bigger JORC resource by the end of the year.
Exceptional historical drill results have been hit in the past, and there is a steady stream of historical assay results to come: 5,000m of drill results from late 2019 are set to be released in the coming weeks; plus a further 6,000m of core that has never been independently assayed or released to the market set to follow.
The company’s own 6,000m drill programme will kick off in the coming weeks.
All results will inform a growth in the resource size from the current 2.1 million ounces, and a conversion to a JORC resource – the more established and recognised resource classification.
By Jonathan Jackson
