SSH Mining to Fund Wagtail Pre-Feasibility; HTM Retains 75% Profit Share
High-Tech Metals has secured a binding mining agreement with SSH Mining to advance the high-grade Wagtail Gold Deposit, enabling near-term production with minimal capital risk.
- Binding Mining Agreement signed with SSH Mining for Wagtail Deposit development
- SSH funds all pre-feasibility works and drilling to Final Investment Decision
- SSH to undertake mining under cost-plus 10% contract, earning 25% of net profits
- HTM retains 75% profit share and ownership of ore and gold sales
- Concurrent Mt Fisher stockpile mining to generate early cash flow
A Strategic Partnership to Accelerate Gold Production
High-Tech Metals Limited (ASX, HTM) has taken a significant step forward in its Mt Fisher Gold Project by executing a binding Mining Agreement with SSH Mining, a subsidiary of SSH Group Ltd (ASX, SSH). This agreement focuses on the Wagtail Gold Deposit, a high-grade resource located on a granted mining lease in Western Australia’s Northern Goldfields.
Under the terms, SSH Mining will fully fund all pre-feasibility studies and drilling required to advance the project to a Final Investment Decision (FID). This arrangement effectively de-risks the capital-intensive early stages for HTM, allowing the company to accelerate development without immediate financial outlay.
Unlocking Value from a High-Grade Deposit
The Wagtail Deposit boasts a JORC 2012 Mineral Resource Estimate of 63,700 tonnes at 7.11 grams per tonne gold, equating to approximately 14,600 ounces of contained gold. Historic drilling has revealed impressive intercepts, including 5 meters at 41.13 g/t and 3 meters at 55.14 g/t gold, underscoring the deposit’s potential for near-term production.
Once HTM decides to proceed with mining, SSH Mining will act as the mining contractor under a cost-plus 10% arrangement and receive 25% of net project profits. HTM retains ownership of all ore and gold sales and a 75% share of profits, effectively securing a free-carried interest in the project’s development and production phases.
Complementary Stockpile Mining to Boost Cash Flow
Alongside the Wagtail agreement, HTM is preparing to commence mining operations on the Mt Fisher stockpiles, which contain an exploration target of 155,000 to 175,000 tonnes grading around 1.0 g/t gold. This initiative is expected to generate early cash flow and establish operational logistics ahead of full-scale mining activities.
Non-Executive Chairman Charles Thomas highlighted the strategic importance of the deal, noting that partnering with SSH Mining provides a low-risk pathway to rapidly advance the Wagtail Deposit and unlock value from the broader Mt Fisher-Mt Eureka gold portfolio.
Looking Ahead
This Mining Agreement represents a pivotal milestone for HTM’s strategy to monetise near-term gold assets while maintaining focus on exploration and development. The collaboration with SSH Mining not only accelerates the timeline to production but also aligns incentives through profit sharing and operational responsibilities.
Investors will be watching closely as HTM progresses through the pre-feasibility phase and approaches the critical Final Investment Decision, which will determine the project's future trajectory.
Bottom Line?
HTM’s free-carried deal with SSH Mining sets the stage for rapid gold production, but the FID will be the true test of viability.
Questions in the middle?
- When will HTM announce the Final Investment Decision for Wagtail mining?
- How will fluctuating gold prices impact the projected profitability and profit-sharing?
- What exploration results might extend the resource beyond current estimates?
