PERTH (miningweekly.com) – Gold developer Maximus Resources has signed a cornerstone toll treatment agreement over its Burbanks treatment plant, in Western Australia, starting in the first half of 2017.
The company said on Friday that third parties would supply gold ore to the Burbanks run-of-mine ore pad for processing upon the completion of the mill refurbishment programme.
The toll treatment would enable the company to start processing activities from July this year.
Maximus remains able to source feed ore from other third party sources throughout the term of the toll treatment agreement, with the company also retaining priority access to milling capacity when sourcing ore from its wholly owned 100 000 oz inventory at the Spargoville gold project, some 60 km from the mill.
The Burbanks processing facility, which was acquired from gold miner Ramelius Resources for A$2.5-million in 2016, includes a two-stage crushing, ball milling and carbon-in-pulp circuit of a nominal 180 000 t/y capacity.
The facility has been on care and maintenance since late 2014.
Meanwhile, Maximus announced plans to raise up to A$1-million through a share purchase plan (SPP), allowing shareholders to subscribe for up to A$15 000 in new shares,
The SPP will be priced at 0.2c a share, which is a 20% discount to the five-day volume weighted average market price of Maximus shares.