Two days after selling its Mt Ida gold project, Leederville-based International Goldfields Ltd has announced plans to sell its Evanston gold project and interests in three others to Polaris Metals NL in a cash and scrip deal.
Two days after selling its Mt Ida gold project, Leederville-based International Goldfields Ltd has announced plans to sell its Evanston gold project and interests in three others to Polaris Metals NL in a cash and scrip deal.
According to an announcement from International Goldfields, Polaris will include the projects in a proposed spin off of its gold and base metals tenements into a new company.
Under the deal, International Goldfields will receive $1 million in cash and 5 million shares in the new company, with a nominal value of $1 million.
The full text of a company announcement is pasted below
Australian exploration and development company International Goldfields Ltd has signed a conditional agreement with fellow Australian explorer Polaris Metals NL for the sale of its Evanston gold project and its interest in the British Hill, Jackson and Clampton North projects in Western Australia to Polaris for $1 million cash and $1 million in scrip.
The Evanston project is located in the Southern Cross Province within the Yilgarn Mineral Field, near Coolgardie in Western Australia, and is located next to one of Polaris' advanced gold and base metals exploration projects.
Consistent with its iron ore strategic planning, Polaris intends to include the IGC Projects in a proposed spin off of its gold and base metals exploration tenements north of Southern Cross. Polaris intends establishing a new company (NewCo) for this purpose.
Pursuant to the agreement with IGC Polaris will
- Pay $1 million in cash to IGC; and
- Procure NewCo to issue 5 million fully paid ordinary shares to IGC with a nominal value of $1 million.
The agreement is subject to final due diligence and necessary regulatory and shareholder approvals being obtained.
IGC executive director Tony Sage said the divestment of the Evanston asset, together with the recent sale of the Mt Ida gold project, would provide International Goldfields with additional funds to meet the Company's expenditure commitments under the Genorah platinum farm-in agreement.
The Genorah Platinum Farms are located in the eastern limb of South Africa's Bushveld Complex. Genorah has commenced an aggressive exploration program on the platinum farms with the aim of proving up a JORC compliant resource. Pursuant to the farm-in agreement with Genorah, IGC can earn a 15% interest in the Genorah Platinum Farms through spending $US10m over a 3 year period.
The proposed divestment is a strategic decision by the Company to free up funds to focus on the farm-in to the Genorah Platinum Farms.
The Company would also like to advise that Ms Emma McCormack has resigned as company secretary and the Company is pleased to announce the appointment of Ms Jo Kiernan to this role.
