Rox makes Paramount sale

In what will be a geographical consolidation of assets for both companies, West Perth-based Rox Resources Ltd has sold its South African diamond projects to West Leederville’s Paramount Mining Corporation Ltd.

Paramount will issue Rox up to six million Paramount shares and make a payment of $30,000 cash. Immediately after settlement, Rox will hold about 5.4 per cent of the company, increasing to a possible holding of 13 per cent.

Paramount will then acquire all the shares in Rox’s South African subsidiary, Nyala Resources Ltd, which owns the tenement assets.

The projects include, in the first instance, two well-located alluvial diamond properties on granted tenure and a suite of projects in the Barkly West area. Most projects are located in the Kimberley, where Paramount has previously explored.

The sale will enable Rox to focus on its lead and zinc exploration projects in Laos, while Paramount will add to its existing South African diamond sites.

Paramount, which also recently bought the Ghanan diamond assets of Balcatta-based exploration company, Caspian Oil and Gas Ltd, has announced its aim to commence exploration of the sites as soon as possible.

Paramount chief executive Maureen Muggeridge said the company had been looking for suitable projects for some time.

“We are particularly pleased to have concluded a deal with Rox on the high calibre Nyala assets as it means Paramount can now resume exploration work in South Africa, while we wait for other projects to be granted,” Ms Muggeridge said.

For his part, Rox managing director Ian Mulholland said profits from the sale would enable the company to pursue a more focused and aggressive exploration program at the company’s Laos tenements.

The company recently settled the sale of its Menzies gold project, receiving $350,000 cash and being issued three million shares in Regal Resources Ltd, representing about 7 per cent of its current issued capital.

A second cash payment of $200,000 is due in February.