Lady Herial Ore Purchase Agreement Executed
| Stock | Lunnon Metals Ltd (LM8.ASX) |
|---|---|
| Release Time | 19 Sep 2025, 9:16 a.m. |
| Price Sensitive | Yes |
Lunnon Metals Executes Ore Purchase Agreement with Gold Fields
- Ore Purchase Agreement executed with Gold Fields Ltd
- Collaborative approach for proposed short life, high-grade Lady Herial open pit
- 70% Lunnon Metals: 30% Gold Fields - share of any future free cash flow
Lunnon Metals Limited (ASX: LM8) has executed an Ore Purchase Agreement (OPA) with St Ives Gold Mining Co. Pty Ltd (SIGMC), a wholly owned subsidiary of Gold Fields Ltd, the Company's major shareholder. The key terms include Lunnon Metals selling any material mined from the proposed Lady Herial operations with a gold grade of at least 0.5g/t to SIGMC. The OPA is conditional on shareholder approval and other regulatory approvals. The final grade control model, mine design and mine schedule will be agreed collaboratively, with any free cash flow shared between the parties in the ratio 70% (Lunnon Metals): 30% (SIGMC). The OPA aligns with the recent Lady Herial Scoping Study and provides details on the financial outcomes under different gold price scenarios.
The OPA provides for Lunnon Metals to receive 70% of any free cash flow from the proposed Lady Herial open pit operations, with the timeframe being the life of the short-lived, high-grade project.
Lunnon Metals aims to mine the Lady Herial deposit safely, efficiently and to plan, while also continuing to deliver more gold discoveries in parallel.