PERTH (miningweekly.com) – ASX-listed Dampier Gold has agreed to sell its remaining equity in the Plutonic Dome gold project, in Western Australia, to joint venture partner Vango Mining for A$6.2-million.
Vango, previously known as Ord River Resources, had earned an initial 75% interest in the Plutonic Dome project by spending A$6-million on exploration over a two-year period.
Under the binding heads of agreement, announced on Tuesday, Vango would pay Dampier Gold a A$2.2-million fee within 14 days after the satisfaction or waiver of conditions precedent, which included Dampier Gold shareholder approval, and third-party approvals.
Four payments of A$1-million each would be made on the achievement of certain production milestones, ranging from 45 000 oz to 300 000 oz, at the Plutonic Dome project.
Furthermore, Vango would pay a production royalty on the overall production from the tenements, with the rate of the royalty adjusting along with the gold price.
The royalty had been capped at A$2-million, with production measured on a post-ore treatment basis.
Dampier said that the transaction with Vango would exclude six tenements, which were to be separately sold to gold miner Northern Star Resources.
The Plutonic Dome project hosted the K2 deposit, which was estimated to host a resource of 415 000 t, grading 7.7 g/t gold for 103 000 oz.
Edited by: Creamer Media Reporter
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