The West

Matsa s Poli desperate for deal on Norseman
Matsa's Poli desperate for deal on Norseman

Matsa Resources chairman Paul Poli says he would consider relinquishing control of the group's flagship $103 million Norseman gold-magnetite project for the right price after confirming he was in advanced talks with Chinese parties for project finance.

Mr Poli also said he felt "an abundant amount of pressure from shareholders to get a deal done yesterday" over Norseman after talks last year with two separate Chinese parties, China Kinwa Technology and Shandong Provincial Bureau of Geology, failed to produce a binding deal. He said he hoped to secure an agreement this year.

Matsa shares jumped 15 per cent yesterday after it said it had signed a term sheet with Shandong Gold Mineral Resources, one of China's biggest gold players, over the 1.47 million ounce Norseman project. They closed 3¢ higher at 23¢.

The proposed agreement would see Shandong take a "significant" stake in Norseman in return for project finance, funding its share of a definitive feasibility study and likely securing offtake for the project's magnetite by-product.

Mr Poli said Shandong would fly to WA within weeks for a site visit and due diligence, with a view to signing a binding deal.

"Shandong are happy with 50 per cent (of Norseman) and a small stake in Matsa; they are happy to run things on an equal footing so we've certainly not discussed offering them control," he said.

Separately Matsa has signed a letter of intent with China Nerin Engineering, proposing a similar deal to Shandong.

The West Australian

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