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Exterra sells off Egerton project

29th May 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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SYDNEY (miningweekly.com) – Junior Exterra Resources would divest of its Egerton gold project, in Western Australia, to fellow junior Gascoyne Resources for A$1-million.

Under the terms of the transaction, Gascoyne would pay Exterra nonrefundable option fees of some A$200 000, giving Gascoyne a 15-month exclusive option period.

On exercising the option, Gascoyne must issue Exterra shares to the value of A$800 000, along with 500 000 Gascoyne options, exercisable at 25c each, within a three-year term.

Gascoyne would also have to spend a minimum of A$100 000 on project exploration prior to electing to withdraw, and would take all responsibility for tenement management during the option period.

Exterra said on Wednesday that the Egerton project, which contains the Hibernian prospect with a resource of some 23 800 oz of gold, was not deemed to be a key focus area for the company going forward, with Exterra rather working towards a development decision for its Second Fortune gold project, also in Western Australia.

The funds received from the Egerton project would go towards the Second Fortune mine development study.

Edited by Creamer Media Reporter

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