PERTH (miningweekly.com) – Graphite hopeful Talga Resources has granted unlisted Caledonian Capital the option to purchase its Australian gold assets for A$1.3-million in cash.
The assets include the Bullfinch, Mosquito, Creek, Talga Talga and Warrawoona projects, all in Western Australia.
The project areas contain several high-grade historic gold mines, but further work is required to advance the prospects to resource stage.
Talga reported on Friday that the option to purchase the projects was subject to Caledonian completing a three-month due diligence, and paying a nonrefundable A$250 000, on top of the A$50 000 already paid. The acquisition would have to be completed within four years, at which point ownership of the projects would transfer to Caledonian upon the settlement of the remaining A$1-million in cash.
Talga would retain 100% equity in the projects until the full acquisition was completed, and would be entitled to a 2.25% net smelter royalty on any gold, diamonds or other minerals extracted from the project during the option period. The net smelter royalty would decline to 1.5% in perpetuity after the close of the transaction.
Talga described the transaction as an “excellent outcome” for the company, allowing it to focus on its graphene and graphite opportunities. Proceeds from the sale and royalty payments would be applied to Talga’s technology materials development programme, in Sweden.