12/02/2013 - 13:49

Apex up on $15m Youanmi sale

12/02/2013 - 13:49

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Apex up on $15m Youanmi sale

Shares in Apex Minerals jumped on the ASX today after the Perth-based announced an agreement to sell its Youanmi gold mine near Sandstone in the Murchison for $15 million.

Apex today announced a binding agreement with privately-held firm Infinity Fame Ltd, which will see the buyer subscribe for $500,000 worth of Apex shares, priced at six cents each, while it performs due diligence.

Upon completion of the due diligence period, the companies said they intend to enter a sale and purchase agreement to take the sale price to $15 million.

“While Apex believes strongly in the potential of the Youanmi gold project to be a near term producer it is currently focusing on returning Wiluna to profitability and the funds from this sale will help it achieve that aim,” Apex said in a statement.

“As previously announced, management does not believe that Youanmi’s underlying value is being recognised by the market in Apex’s recent share price. The successful completion of this transaction will realise this unrecognised value.”

Meanwhile, Apex also announced an agreement with mining identity Mark Creasy to investigate processing ore from Mr Creasy’s Bogada Bore gold project through Apex’s Wiluna processing facilities.

The discussions are expected to last up to 45 days, Apex said.

Apex’s Wiluna plant has a capacity of 1.1 million tonnes per year, of which it is currently using around 600,000tpa.

“A key consideration for Apex with respect to any possible agreement is the need to optimise the throughput of the Wiluna plant and diversify the production base,” the company said.

“The Youanmi deposit, whilst highly prospective in its own right, is not suitably located to provide cost effective additional tonnes for the Wiluna plant.”

At close of trade today, Apex shares were up 9.8 per cent, trading at 4.5 cents. 

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