MacPhersons adds tenements

THE BOURSE WHISPERER: MacPhersons Reward Gold has entered binding agreements to acquire 40 square kilometres of additional tenements situated around and between the company’s recently acquired Nimbus and Boorara tenements.

The agreements are with four neighbouring tenement holders that will result in the acquisition of various tenements situated adjacent to the Nimbus silver-gold-zinc mine site, located eight kilometres east of the Kalgoorlie superpit.

 

Tenement location plan, east of the Kalgoorlie superpit. Source: Company announcement

 

The tenement acquisitions are denoted as Areas 1 to 4.
 
Area 2 abuts the existing Nimbus silver tailings storage facility which is undergoing a review for expansion in preparation for the resumption of silver processing operations in 2012.

“Prior to the tenement acquisitions, MacPhersons’ Nimbus-Boorara project had approximately 40 square kilometres of tenement area,” MacPhersons said in its ASX announcement.

“With the acquisition of the additional tenements, Macphersons’ project area will be approximately 80 square kilometres covering the highly prospective Boorara Shear zone and the Nimbus VHMS silver-gold-zinc belt.”

Terms of acquisition of each Area are as follows:
 
Area 1

Known as the Balagundi West and Balagundi East projects is being acquired from Cazaly Resources for a consideration of:

A cash payment of $150,000;

500,000 fully paid ordinary shares in the Purchaser (Shares) that equates to $150,000 worth of Purchaser shares (at an issue price of 30 cents per share);

Three years from signing the agreement a cash payment of $700,000; and

A Net Smelter Return of one per cent capped at $2 million effective upon production coming from the Balagundi tenements.

Area 2

Known as P25/2144 is being acquired from the East Kalgoorlie Joint Venture, an unincorporated joint venture between ASX-listed Northern Mining (76%) and Balagundi Gold (24%), for a consideration of:

A cash payment of $250,000; and

806,452 fully paid ordinary shares in the Purchaser (Shares) that equates to $250,000 worth of Purchaser shares (at an issue price of 31 cents per share).

Area 3

Known as the Nimbus East project is being acquired from Ralph John Winter, for a consideration of:

A cash payment of $50,000; and

166,667 fully paid ordinary shares in the Purchaser (Shares) that equates to $50,000 worth of Purchaser shares (at an issue price of 30 cents per share).

Area 4

Known as P26/3832 is being acquired from Thomas Giri, for a consideration of:

A cash payment of $5,000.