PERTH (miningweekly.com) – ASX-listed Kidman Resources has continued its drive to divest of its Western Australian gold assets, signing a deal with fellow-listed Barra Resources to sell its subsidiary Coolgardie Mining Company.
Under the terms of the agreement, announced on Monday, Barra would pay Kidman an upfront fee of A$121 000, and a royalty of A$20/oz for the first 55 000 oz of gold sold from the Burbanks mine.
The transaction would see ownership of the Burbanks project return to Barra, after being held by Kidman for a period of two years.
Barra said that the deal was "extremely positive" in that it provided the company with access to 100% of the potential shallow and depth mineralisation, including the existing decline access, which could prove pivotal to any future mining operation at the nearby Main Lode deposit.
Kidman, meanwhile, said that following the sale of the Coolgardie Mining Company, its focus would be on its lithium joint venture activities at Mount Holland, and that it would continue the process of divesting its noncore assets.