PERTH (miningweekly.com) – Gold miner Norton Gold Fields would acquire the Mt Jewell project from fellow-listed KalNorth Gold Mines for A$1.8-million.
KalNorth has been involved in discussions to divest its noncore assets, which form part of its land-holding in the Goldfields region of Western Australia, as part of its efforts to reduce operating costs by rationalising its tenement holdings.
The miner said on Friday that its agreement with Norton included all mineral tenements and exploration databases over the Mt Jewell project.
Following the payment of deferred purchase consideration payable by KalNorth to the previous holder of the Mt Jewell project, the sale proceeds from the project would go towards working capital, and would enable KalNorth to undertake limited exploration activity in the near future.
Meanwhile, Norton has also executed a formal agreement with fellow-listed Carbine Resources to divest of its Mt Morgan gold and copper project, in Queensland.
Carbine would acquire the project through the acquisition of Raging Bull Metals (RBM), which is the current holder of an agreement with Norton Gold Fields to acquire the project.
During its operational life, the Mt Morgan mine produced 8.4-million ounces of gold, 400 000 t of copper and 1.2-million ounces of silver from the mining and processing of approximately 50-million tonnes of ore. Mining operations at Mt Morgan were discontinued in 1980 after nearly 100 years of activity.
Carbine would progressively earn 100% of RBM by sole funding the project to completion of a bankable feasibility study (BFS), earning an initial 75% interest, and executing an option to acquire the remaining 25% of RBM via independent valuation.
Raging Bull will receive 25-million shares in Carbine on the successful production of 10 000 oz of gold and on the production of 5 000 t of copper from Mt Morgan and/or other projects acquired through Raging Bull.
RBM’s right-to-mine agreement with Norton for acquisition of the project requires a payment of A$100 000 to Norton on the completion of due diligence and a A$400 000 payment after six months, as well as the completion of a BFS on the project, and a payment to Norton of A$2-million on completion of a capital raising following the BFS.
A final payment to Norton of a total A$13-million via 20% of the annual net earning from operations of the project was also due.