BULLION Minerals has acquired three new gold and nickel projects and existing gold resources from Resolute Limited, a wholly owned subsidiary of Resolute Mining Limited.
The company will be going to its shareholders, at a date yet to be advised, to get their approval to issue Resolute 10 million shares and five million options – comprising 2.5 million June 2005 options exercisable at 25 cents and 2.5 million June 2006 options exercisable at 30 cents.
Bullion will also pay Resolute $750,000 within 90 days of the shareholders meeting.
Providing shareholders approve the payment arrangements for the purchase, Resolute will become the largest shareholder in Bullion holding 19.75 per cent of the expanded capital.
The purchases are:
The Chalice Gold and Nickel Project including Resolute’s Chalice Gold Mine with a defined resource of 162,700 ounces of gold;
The Higginsville Nickel Project through a nickel mining rights agreement with St Ives Gold Mining Company – a subsidiary of Gold Fields Limited; and
The Indee Gold Project where previous work has delineated a gold resource of 494,000 ounces. Opus Exploration Pty Ltd – a wholly owned subsidiary of Range River Gold – has the right to earn up to a 70 per cent interest by spending $2.5 million.
These resources are the remainder of Resolute’s remaining Australian assets.