Terrain's $3m gold sale called off

Terrain Minerals says a $3.25 million deal to sell its Coogee gold deposit has been terminated after buyer Argonaut Mining Group could not come up with the funds.

Under the deal, Argonaut was to make a series of staged payments to Terrain however after Argonaut failed to meet the initial payment deadline, the schedule had been re-negotiated.

Terrain said those negotiations have been ongoing but Argonaut informed that it will not be able to come up with the money.

"Other parties have indicated interest in the Coogee Gold Deposit and discussions regarding a future sale will continue," Terrain said.

Earlier this week, Terrain had over $650,000 in cash plus bonds of $334,000.

Shares in Terrain closed untraded at 3.5 cents.