Belmont-based gold and base metals explorer Great Australian Resources Ltd has completed an agreement with Perth-based metals explorer View Resources Ltd for the latter's purchase of a tenement within the Corboys gold project area.
The agreement, comprising of cash, View's script and royalties is potentially worth over $700,000 to GAU. This amount may increase substantially should either the gold price or VRE's share price appreciates.
View, which yesterday announced plans to raise $10 million through a rights issue, aims to move its Bronzewing gold project into positive cash flows by December.
View has spend over $500,000 on test work on tenement, located 30 kms north of the Bronzewing project.
The full text of a Great Australian announcement is pasted below
Great Australian Resources Ltd (ASX code: GAU) is pleased to announce that it has finalised a Sale Agreement with View Resources Ltd (ASX code: VRE) over a tenement from the Corboys Project area (Mining Licence 53/15) which is located 30kms north of VRE's Bronzewing Project, within the Yandal Greenstone Belt.
Previously VRE had entered into an Option Agreement with the Company over the tenement whereby VRE had the opportunity to exercise the option to purchase the tenement prior to 31st December 2007.
The agreement, comprising of cash, VRE's Script and royalties is potentially worth over $700,000 to GAU. This amount may increase substantially should either the gold price or VRE's share price appreciates.
Under the terms of the option agreement, VRE has spent in excess of $500,000 on upgrading the resource status and completing the necessary test work, drilling and pre-feasibility studies.
In announcing the sale agreement GAU's Managing Director, Joe Cornelius said, "The agreement is consistent with GAU's recent Board decision to divest its Australian assets and focus on its South African projects". He further added, "We currently have a number of potential world class projects in our portfolio and this agreement with View Resources enables the Company to remain focused while the Corboys project is being developed to the next stage."
VRE has commenced mining at its Bronzewing Mine where it owns and operates a 2.3mtpa plant and infrastructure and the Corboys tenement further consolidates VRE's focus in the Yandal Belt region.
