West Perth-based gold explorer Jackson Gold Ltd has announced plans to sell some gold prospects to Saracen Gold Mines Ltd, renewing its focus on the Boolaloo copper-gold-uranium project, in a deal worth $7 million.
West Perth-based gold explorer Jackson Gold Ltd has announced plans to sell some gold prospects to Saracen Gold Mines Ltd, renewing its focus on the Boolaloo copper-gold-uranium project, in a deal worth $7 million.
The full text of a company announcement is pasted below
Diversified Australian resources company Jackson Gold Limited ("Jackson or The Company") (ASX: JAK) is pleased to announce that it has entered into a conditional agreement for the Sale of Mining Assets, including the Wallbrook gold resources, with Saracen Gold Mines Pty Ltd ("Saracen").
The total value of the sale to Jackson is approximately $7 million, which is based on the terms and conditions of the sale to Saracen Gold Mines.
Key commercial terms are;
- Ministerial approval for tenement transfer
- Consent of third parties: and
- Consent of Jackson Gold shareholders (if required)
Total consideration payable to the Company is approximately $7 million, assuming mining of 2 million tonnes from the Project Area and an SAR share price of 35 cents.
The Company is extremely pleased to have resolved the future of the Wallbrook gold resources following a detailed Scoping Study during 2006 and assessment of all options to create shareholder value from this asset.
The Company believes that the large low-grade gold resources at Wallbrook are best developed through the owners of local infrastructure. Saracen, as owners of the Carosue Dam Operations and extensive gold resources in the region, can immediately incorporate the Wallbrook resources into their current Definitive Feasibility Study.
The Company has a high level of confidence that Saracen, with the benefit of the Wallbrook resources, will bring the Carosue Dam Operations back into production in the near term.
Company Strategy
In expectation of a successful settlement of the Wallbrook resources, the Company is now primarily focussed on the Boolaloo copper-gold-uranium project.
Funding from the sale will be used to accelerate the company's aggressive exploration of the Boolaloo Project to assess the full extent of the mineralised system in the Minga Bore area and within the remainder of the project.
In addition, the Kalgoorlie Nickel Project and the Peak Hill project are being actively explored by Joint Venture partners Breakaway Resources and Gleneagle Gold.
Project generation activities are advancing with a view to assessment of project opportunities in Australia and overseas.
