Leederville-based International Goldfields Ltd has received $2.5 million in the first tranche of Monarch Gold Mining Company Ltd's $5 million purchase of the Mt Ida gold mine.
The full text of a company announcement is pasted below
Diversified Australian resources company International Goldfields Ltd ("International Goldfields" or "the company") has received payment of $2.5m from Monarch Gold Mining Company Limited (Monarch) as part of the Sale Agreement relating to the purchase the Mt Ida gold mine, near Kalgoorlie in Western Australia, for $5m.
This is the first substantive payment as part of this Sale Agreement, with the final payment of $2m to be made on or before 30 December 2007.
The sale agreement consists of a tenement package at Mt Ida that is subject to a Farm-In and Joint Venture Agreement with International Goldfields and La Mancha Resources. La Mancha have a 51% farm in right on all gold discovered by way of spending A$7.5 million on gold exploration at the Mt Ida project over a five year period.
Earlier this year International Goldfields also sold the Meteor, Whinnen, Baldock and Timoni ore bodies, together with associated mine and camp infrastructure, plant and equipment established by the Company at Mt Ida, to Monarch for A$2.3m .
The final payment of this transaction, $1.7m, will also be made on or before 30 December 2007.
The complete sale of the Mt Ida gold infrastructure consolidates the Company's focus on the exploration and development of the recently acquired farm in rights to the Genorah Farms platinum project in the Bushveld region of South Africa.
International Goldfields, together with its project partners have commenced significant exploration at this project and expects results of this to become available by the end of the month.
