Maritana Minerals Locks in Royalties on 150,000oz Gold Tailings at Zero Capital Cost
Key Takeaways
- Encore Minerals has made a positive Final Investment Decision on the Windarra Tailings Project, triggering the Development Period under the binding Heads of Agreement with Maritana's subsidiary Poseidon Nickel Pty Limited.
- Maritana is entitled to staged cash payments totalling $1.25 million, including a $400,000 non-refundable payment due by 30 July 2026 and a $1.6 million rehabilitation bond payable on execution of the full form agreement.
- Maritana holds a 3% net smelter return royalty on Windarra tailings production and a 1.5% NSR on Lancefield tailings, with zero capital cost obligation to shareholders.
- The 2021 DFS outlined an Ore Reserve of approximately 5.5 million tonnes containing 150,000 ounces of gold, with the Australian dollar gold price now materially above the parameters assumed in that study — directly enhancing royalty income potential.
- Windarra's nickel tailings are excluded from the current FID scope and will be considered separately as the nickel market improves, representing an additional optionality layer not yet captured in the current deal.
Encore pulls the trigger on Windarra — what the FID means for Maritana
Maritana Minerals has confirmed that Encore Minerals Pty Ltd has made a positive Final Investment Decision (FID) on the Windarra Tailings Project, triggering the Development Period under the binding Heads of Agreement with Maritana’s wholly owned subsidiary, Poseidon Nickel Pty Limited. The project is located approximately 18km north-west of Laverton in the north-eastern Goldfields of Western Australia, and involves Encore, Mining and Process Solutions Pty Ltd (MPS), and Encore Resources S.a.r.l (EncoreRes), part of the Draslovka group of companies.
As required under the Agreement, Encore has provided Poseidon with an Updated Definitive Feasibility Study (Updated DFS) covering both the Windarra and Lancefield tailings. Critically, Encore is solely responsible for all funding, development, operation, closure, and rehabilitation of the project — meaning zero capital cost to Maritana.
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What Maritana receives — cash, royalties, and zero development risk
The Agreement delivers a staged cash payment structure totalling $1.25 million, alongside royalty entitlements on future production. Here is the full breakdown:
- $250,000 received on execution of the Agreement (July 2024)
- $100,000 received upon exercise of the Extended Testing Period (July 2025)
- $400,000 non-refundable Secondary Development Period Consideration, paid on or before 30 July 2026
- $1.6 million Encore Rehabilitation Bond, now payable upon execution of the full form agreement (note: varied from the original terms, under which this was payable prior to commencement of the Development Period)
Maritana is also entitled to a 3% net smelter return royalty on production from the Windarra tailings, and a 1.5% net smelter return royalty on production from the Lancefield tailings. A net smelter return royalty pays the holder a percentage of gross revenue from metal sales, net of smelting and refining costs, with no exposure to operating expenses.
Grant Haywood, Managing Director and CEO
“The Tailings Project will be fully funded, developed and operated by Encore, with Maritana receiving staged cash payments and retaining a 3% net smelter return royalty on production (1.5% on Lancefield) – meaningful, ongoing exposure to the Tailings Project at no capital cost to our shareholders.”
| Milestone | Date | Amount | Status |
|---|---|---|---|
| Agreement execution | July 2024 | $250,000 | Received |
| Exercise of Extended Testing Period | July 2025 | $100,000 | Received |
| Secondary Development Period Consideration | On or before 30 July 2026 | $400,000 | Paid (non-refundable) |
| Encore Rehabilitation Bond | Upon execution of full form agreement | $1.6 million | Payable (varied terms) |
Understanding the Windarra Tailings Project and Glycine Leaching Technology
Tailings are the residual material left behind after ore has been processed to extract its primary metals. They are not waste in the conventional sense — tailings often retain recoverable quantities of other metals, and as commodity prices rise, projects that were once uneconomic can become viable.
A 2021 Definitive Feasibility Study on the Windarra and Lancefield gold tailings outlined an Ore Reserve of approximately 5.5 million tonnes containing approximately 150,000 ounces of gold, with the potential to produce approximately 53,500–55,200 ounces of gold over an initial 45-month period. Since then, the Australian dollar gold price has risen materially above the parameters assumed in that 2021 DFS, which is expected to significantly enhance the project’s economics for Encore, and in turn, improve the value of Maritana’s net smelter return royalty.
The project will be developed using Draslovka’s proprietary Glycine Leaching Technology, commercialised under the brand names GlyCat™ and GlyLeach™. Glycine leaching is a cyanide-alternative process that uses the amino acid glycine to dissolve and recover gold from ore, and is considered more environmentally benign than conventional cyanide-based methods. The Updated DFS prepared by Encore confirms the technical and economic viability of the project for gold processing, with nickel tailings to be considered separately in the future.
For investors, the net smelter return royalty structure means Maritana retains leveraged exposure to production upside — if gold prices remain elevated and Encore produces more ounces, Maritana’s royalty income grows accordingly, with no obligation to fund operations.
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Windarra remains in play — and Black Swan is the next catalyst
The FID covers the gold tailings from both Windarra and Lancefield. The nickel tailings from the central dam are not included in the current scope; processing of those tailings will be considered once the nickel market improves, on terms to be agreed in the full form agreement.
Beyond the tailings, Maritana is continuing to develop the gold prospectivity of the broader Windarra asset portfolio and to evaluate a range of options for the Windarra assets. The monetisation of non-core assets such as Windarra is expected to free focus toward Maritana’s core priority: the conversion of the Black Swan Processing Hub, with first gold production planned for H2 CY2026.
It is worth noting that if Encore proceeds to the Development Period, this must occur within 2 years from the FID date — a condition that frames the timeline for when royalty cash flows could commence.
Grant Haywood, Managing Director and CEO
“Importantly, Windarra remains a highly prospective gold district. We will continue to develop the gold prospectivity of the broader Windarra tenure and to evaluate all options for the Windarra assets to deliver further value for shareholders.”
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