Dragon sells gold project for $90m

Perth-based precious metals explorer Dragon Mining Ltd has finalised the sale of its Pampalo gold project, in Finland, to mining company Endomines AB for around $90 million.

The full text of a Dragon announcement is pasted below

Dragon Mining advises the completion of the Pampalo Gold Project sale following receipt of the outstanding balance of the purchase price of 5.4 million euro from Endomines AB.

The Company received a non-refundable deposit of 600,000 euro in February 2006 and further payments of 150,000 euro in May 2006 and 50,000 euro in September 2006 to extend the completion date from 31 May 2006 until 31 October 2006.

The proceeds from the sale will be primarily utilised to complete the confirmatory drilling and development work being undertaken at Sarvisuo to enable mining to be re-established at Orivesi and the re-opening of the Vammala Plant. Funding is also allocated for
resource drilling in and around Vammala in Finland and Svartliden in Sweden.

Endomines AB raised funds through a private placement arranged by Erik Penser Fondkommission AB in Sweden and has embarked on a drilling program and feasibility studies on the Pampalo Gold Project.