SSH Mining Australia has entered a profit share mining agreement with High-Tech Metals to advance the Wagtail Gold Deposit, marking a pivotal step in the Mt Fisher Gold Project's development.
- SSH to fund pre-feasibility and drilling at Wagtail Gold Deposit
- Profit share agreement grants SSH 25% of net project profits
- HTM retains 75% ownership and decision-making control
- SSH responsible for mine development and operational management
- Agreement includes detailed security interests and termination clauses
Strategic Partnership for Wagtail Gold Deposit
SSH Mining Australia Pty Ltd has formalised a profit share mining agreement with High-Tech Metals Limited (HTM) to progress the Wagtail Gold Deposit, part of the Mt Fisher Gold Project in Western Australia. This deal positions SSH as both financier and operator for the project's critical pre-feasibility and development phases, signaling a significant advancement in unlocking the deposit's value.
The agreement tasks SSH with funding all pre-feasibility activities, including drilling, earthworks, and site establishment, up to a Final Investment Decision (FID). This financial commitment underscores SSH's confidence in the deposit's potential and its willingness to shoulder early-stage risks typically borne by project owners.
Profit Sharing and Operational Responsibilities
Should HTM decide to proceed with mining following the scoping study, SSH will secure a cost-plus 10% mining contract and receive 25% of the net project profits, with HTM retaining the majority 75% share. This structure aligns incentives between the two parties, balancing operational control with profit participation.
Operationally, SSH will manage all aspects of mine development and operations, including drilling, haulage, logistics, and regulatory compliance under HTM's authority. Meanwhile, HTM maintains responsibility for tenement rights, environmental and heritage approvals, and acts as the legal mine operator, ensuring regulatory obligations are met.
Security and Governance Provisions
The agreement includes robust security measures, granting SSH a first-ranking General Security Interest over ore in situ, ore produced until delivery, and HTM’s metals account until all obligations are fulfilled. This protects SSH’s investment and aligns with industry best practices for joint venture arrangements.
Termination clauses provide safeguards for both parties, addressing material breaches, insolvency, and regulatory compliance failures. Notably, HTM can suspend works if projected net profits fall below a threshold of $250 per ounce, reflecting prudent financial discipline.
Implications for the Mt Fisher Gold Project
This agreement marks a crucial milestone in advancing the Mt Fisher Gold Project, potentially accelerating the timeline to production. By leveraging SSH’s operational expertise and funding capacity, HTM can mitigate upfront capital risks while retaining strategic control. Investors will be watching closely for upcoming drilling results and the eventual Final Investment Decision, which will determine the project's commercial viability.
Bottom Line?
The SSH-HTM partnership could redefine the trajectory of the Wagtail Gold Deposit, but key feasibility outcomes remain to be seen.
Questions in the middle?
- What timeline is anticipated for the Final Investment Decision on mining?
- How will drilling results influence the projected profitability and scale of operations?
- What regulatory hurdles remain before mining can commence at Wagtail?