logo-loader

Australian Mines moves closer to divestment of Mt Martin Gold Mine in WA

Last updated: 03:31 04 Oct 2011 EDT, First published: 02:31 04 Oct 2011 EDT

no_picture_pai

Australian Mines (ASX:AUZ) has completed a tenement purchase agreement for the $7.5 million sale of its Mt Martin Gold Mine in Western Australia to HBJ Minerals, so the company can focus primarily on exploring the Nigerian schist belts as it becomes more West Africa-focused.

HBJ Minerals, a wholly owned subsidiary of Alacer Gold, has agreed to purchase the gold mine and its associated leases by paying a $250,000 deposit and $2.25 million on completion of the sale or within 30 days from September 30.

The company will also pay a second instalment of $2.5 million on June 29, 2012 and a final instalment of $2.5 million on June 28, 2013.

The leases included in the agreement are East Location 45, including two associated leases – M 26/464 and M26/13, Duplex Hill (Woodline Project) and the southern portion of E26/139.

The agreement does not include the Golden Ridge tenements, other than the southern portion of E26/139, where Australian Mines controls 100% of the gold rights in addition to 44% of the nickel rights through the Golden Ridge joint venture with Pioneer Resources (56%).

The sale also does not include Australian Mines’ 100%-owned Blair nickel mine and associated infrastructure and the Marriott’s nickel project.

Australian Minerals’ directors believe the best commercial result for shareholders was to divest the Australian assets and that the sale represents a good result for the company as it provides shareholders financial stability for the foreseeable future without potential equity raisings.

The $7.5 million proceeds will provide funding for accelerated exploration in Nigeria over the coming years.

Australian Mines is now concentrating its full efforts on exploring the Nigerian schist belts, where it is believed the region has the potential for multi-million ounce gold and significant base metal discoveries.

The company said it would also continue to assess resource exploration and production opportunities in other geographies it believes potential exists to enhance shareholder value through further acquisitions.

Australian Mines is an Australian Securities Exchange-listed gold and base metals exploration company.
 
It has recently acquired extensive tenement holdings in Nigeria's northwest schist belt region that offer similarities to the better known gold producing countries of Ghana, Cote d'Ivoire and Burkino Faso.

Ramp Metals Launches Drilling Program in Pursuit of High-Grade Nickel in...

Ramp Metals CEO Jordan Black joined Steve Darling from Proactive to introduce the company to the public domain and share exciting developments in the mining industry. With a background as a geotechnical engineer and experience in venture capital, including a notable role in taking GoldSpot...

30 minutes ago