THE BOURSE WHISPERER: Beacon Minerals has signed the legal papers required for the sale agreement with Ramelius Resources in regard to selling the mining lease at the Barlee gold project.
The sale is now subject to approval by shareholders at a General Meeting.
Barlee Tenements. Source: Company announcement
Beacon is optimistic regarding the sale saying it will establish a strong financial base for the company to grow, potentially through both the acquisition of new ground and further exploration of the remaining Barlee tenements.
“This recapitalisation will allow the company to continue exploration of several prospective targets at Barlee as well as continue the current advanced negotiations on project opportunities which are located in geological regions where existing large scale gold resources occur,” Beacon Minerals said in its ASX announcement.
The payment terms for sale of the Mining Lease (ML) are:
– Payment of $4 million cash representing reimbursement of exploration expenditure;
– Royalty of $80 per ounce for gold produced from 1 to 40,000 ounces from the ML;
– Royalty of $160 per ounce for gold produced from 40,001 to 100,000 ounces from the ML; and
– Royalty of 2.0 per cent of the value of gold produced from the ML above 100,000 ounces.
Once the transaction has shareholder approval and is completed Beacon will have:
– Cash reserves of approximately $5 million;
– Listed securities in Consolidated Tin Mines with an estimated value of $900,000;
– Royalty income from the production of gold from the mining lease; and
– 388 square kilometres of exploration ground at the Barlee gold project with prospective targets.