JOHANNESBURG (miningweekly.com) – ASX-listed Maximus Resources has taken full ownership and control of the Spargoville gold project, 70 km south of Kalgoorlie, in Western Australia’s eastern goldfields.
The 11 400 ha Spargoville holdings included the former high-grade Wattle Dam gold mine area and held a substantial exploration tenement package of 27 granted mining leases, two granted exploration licences, five prospecting licences and two miscellaneous licences.
The move formed part of a revised package of arrangements by Maximus with former project owner Tychean Resources. Under these arrangements, Maximus would receive an immediate 90% stake in Spargoville – up from its previous 51% interest earned in rapid fashion by spending the required $200 000 on first stage exploration of the tenements within three months of a farm-in deal signed in August last year.
That farm-in committed Maximus to earn up to 90% in Spargoville by spending a further $600 000 over three years, which had now been extinguished under the new acquisition terms.
In addition, Maximus would no longer have to pay the previously committed gold royalty to Tychean and would move to 100% project ownership with the issue of $50 000 worth of Maximus ordinary shares to Tychean upon Ministerial approval and receipt of all third party consents.
“The benefits of this transaction are significant to Maximus. It will allow us to progress its exploration activities on the Spargoville tenements to the full benefit of Maximus shareholders,” said MD Kevin Malaxos.
He added that the process could include the sale or joint venture of noncore, nongold assets on the Spargoville field.