Cazaly Resources has finalised a deal with Placer Dome Asia Pacific to acquire Placer’s Castle Hill Project located 35 kilometres north of Coolgardie.
The Castle Hill Project, which covers an area of about 15 square kilometres, is adjacent to Cazaly’s Kunanalling Project.
Cazaly has agreed to pay Placer "a nominal cash consideration".
Placer retains:
- A once off right to clawback a 70 per cent interest within 60 days of being notified of the establishment of a 300,000 ounce resource on the project by paying Cazaly two and a half times the expenditure, including acquisition costs, incurred with the resource discovery. The buyback relates only to the resource area;
- The right to explore for conceptual targets within a declared area of the project at Placer’s expense. Any resource discovery of 300,000 ounces or more would be deemed to be owned 70 per cent by Placer and 30 per cent by Cazaly. If a resource of less than 300,000 ounces is discovered it will be deemed to be 100 per cent Cazaly-owned.
- The option to acquire or process any ore produced from the project or from tenements owned or acquired by Cazaly within 100 kilometres of Placer’s Paddington mill, at best commercial rates;
- A 2 per cent net smelter royalty on all gold produced from the project except where a pre-existing royalty exists.