Australian Mines completes Mt Martin sale

THE BOURSE WHISPERER: Australian Mines has completed divestment of the Mt Martin tenements receiving the initial payments totalling $2.5 million.

The tenements are being transferred from Australian Mines to HBJ Minerals, a wholly-owned subsidiary of dual-listed (ASX and TSX) Alacer Gold.

Under the agreement HBJ is to pay a second instalment of $2.5 million on 29 June 2012, with a final $2.5 million instalment payable to Australian Mines on 28 June 2013.

Australian Mines said the funding from the will enable it to carry out an aggressive exploration program on its tenement portfolio located within Nigeria’s northwest gold province.

 

Location of Australian Mines’ tenement portfolio in northwest Nigeria. Source: Company announcement

This program includes completing detailed soil sampling programs that are currently underway on the company’s Yargarma and Kasele project areas, in addition to flying high-resolution airborne geophysical surveys over a number of priority targets within the first half of 2012.

Australian Mines also expects to spend a considerable amount of the $5 million it will receive from the second and third instalments to fund a series of reverse circulation (RC) drilling programs.

These drilling campaigns are anticipated to commence in the second half of 2012.

“This announcement constitutes very positive news for the company in allowing Australian Mines to focus wholly on our West African gold assets in Nigeria,” Australian Mines chief executive officer Benjamin Bell said in the company’s announcement to the Australian Securities Exchange.

“Furthermore, the payment of the second and third instalments totalling $5 million from the Mt Martin divestment sale ensures the company’s extensive exploration activities, including a significant amount of drilling, are fully-funded until 2014.”