An asset sale agreement between North-West Queensland gold producer Tombola Gold and True North Copper has been terminated, replaced by a $2 million deal covering only the Wynberg tenements.

Last year Tombola signed a binding term sheet for the acquisition of various interests in five True North projects around the Cloncurry region including Wynberg and the Wallace South gold-copper project, located 39km south of Cloncurry.

“Restructuring this arrangement with True North Copper gives the company more flexibility with regard to the timing of completion, and has enabled us to focus only on the Wynberg project area which we believe best compliments the company’s existing project and resource inventory,” Tombola Gold managing director Byron Miles said.

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Wynberg, 20km south-east of Cloncurry, is permitted and Tombola has flagged its potential to be brought quickly into production.

An option agreement has been executed for its purchase.

The Wynberg tenements will be acquired subject to a 2 per cent net smelter royalty in favour of Round Oak Minerals, which will remain in place after completion.

In February, Bundarra copper project owner Duke Exploration announced it had entered into a binding formal agreement with the shareholders of True North Copper to acquire all of the issued share capital in the company.

The True North Copper asset package contains a JORC copper resource of 26.94Mt at 1.12 per cent copper, a JORC cobalt resource containing a combined 9.15Mt at 0.23 per cent cobalt, the Cloncurry Great Australia mine processing facilities, and more than 552sq km of prospective exploration tenements.