Traka Resources Secures $235K Cash and Shares in Mt Cattlin Deal Extension
Traka Resources has extended the option period for the Mt Cattlin Gold Project sale, securing a revised deal with potential upside, while stepping away from the Didi Gold Project to sharpen its focus on core assets.
- Option period for Mt Cattlin sale extended to 30 November 2025
- Revised terms include cash, shares, and performance rights in acquiring ASX-listed company
- Exercise of option contingent on Traka’s approval of acquiring company
- Traka exits Didi Gold Project following joint venture termination
- Strategic focus shifts to projects with stronger shareholder value potential
Extension and Enhanced Terms for Mt Cattlin Sale
Traka Resources Limited (ASX, TKL) has announced a significant update regarding the sale of its Mt Cattlin Gold Project. The company has executed a Deed of Variation and Extension with Prowse Commodities Pty Ltd, extending the option period to 30 November 2025. This extension provides Traka with additional time to evaluate the transaction amid ongoing developments.
Under the revised agreement, Traka will receive a combination of cash, shares, and performance rights upon exercising the option. Specifically, the company will get $235,000 in cash, $200,000 worth of fully paid ordinary shares in the acquiring ASX-listed company, and a matching number of performance rights. These performance rights hinge on the acquiring company achieving a JORC-compliant Indicated Mineral Resource of at least 250,000 ounces of gold within 36 months, offering potential upside tied to resource milestones.
Conditional Exercise and Strategic Considerations
The exercise of the option remains conditional on Traka’s satisfaction with the acquiring ASX-listed company nominated by Prowse Commodities. This clause gives Traka sole discretion to approve the acquirer, ensuring alignment with its strategic interests. The revised terms represent an improvement over the original agreement announced in May 2025, securing additional value for shareholders while maintaining exposure to future project upside.
Exit from Didi Gold Project
In a separate but related development, Traka has decided not to continue with the Didi Gold Project following a termination notice from its joint venture partner, Alamako Resources SARL. The company has concluded that further engagement is unlikely to yield a favourable outcome and will instead concentrate its efforts on its remaining portfolio. This move aligns with Traka’s strategy to prioritise projects that offer the best prospects for creating shareholder value.
Overall, these decisions reflect a clear strategic focus by Traka Resources to streamline its project portfolio and enhance value creation opportunities. Investors will be watching closely as the company navigates the final stages of the Mt Cattlin transaction and reallocates resources away from less promising ventures.
Bottom Line?
Traka’s recalibrated approach signals a sharper focus on value-driving assets amid evolving project dynamics.
Questions in the middle?
- Will the acquiring ASX-listed company complete the acquisition of Prowse Commodities as planned?
- How likely is the Mt Cattlin project to meet the JORC resource milestone triggering performance rights?
- What are Traka’s next steps for its remaining portfolio following the Didi Gold Project exit?
