Sign up USA
Proactive Investors - Run By Investors For Investors

Beacon Minerals sells Barlee gold mining lease to fund acquisitions and exploring remaining leases

Beacon Minerals sells Barlee gold mining lease to fund acquisitions and exploring remaining leases

Beacon Minerals (ASX: BCN) has secured funds to acquire new assets and further exploration of its Barlee Gold Project tenements in Western Australia after selling Mining Lease ML 77/1254 at Barlee to Ramelius Resources for A$4 million and a royalty on any gold produced there.

The deal will bring Beacon’s cash reserve up to about A$5 million, allowing it to continue exploration of several prospective targets at its remaining Barlee tenements, which cover 388 square kilometres, as well as continue current advanced negotiations on project opportunities which are located in geological regions where existing large scale gold resources are present.

Royalty on gold produced from ML 77/1254 is A$80 per ounce for the first 40,000 ounces, A$160 per ounce for gold produced from 40,001 to 100,000 ounces and a 2% interest on any gold produced above 100,000 ounces.

This will give Beacon total royalty of A$12.8 million on the first 100,000 ounces of gold produced from the licence.

Beacon also holds listed equities in Consolidated Tin Mines worth about A$900,000.

ML 77/1254 forms the basis of a mining proposal Beacon had submitted to the Western Australian Department of Mines in November for a initial optimised mining resource of 172,000 tonnes at 7.5 grams per tonne, or 42,000 ounces of gold.

However, Beacon decided to sell the lease after establishing there were insufficient resources to support a stand alone processing facility while options for toll treatment at existing operations and potential operations coming on stream provided poor financial returns.

Ramelius’ offer was assessed to be the best in regards to the maximisation of shareholder wealth and the gold producer already has an existing process plant at Mt Magnet with plans to start mining at Barlee this year.

View full BCN profile View Profile

Beacon Minerals Ltd Timeline

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use