Phillips River picks up Galaxy ground

THE BOURSE WHISPERER: Phillips River Mining has entered into an agreement with Galaxy Resources to acquire four tenements of 3.1 square kilometres, located within the Ravensthorpe region of Western Australia.

The transaction involves the Mt McMahon tenements, situated four kilometres of Ravensthorpe.

 

Plan of tenements to be acquired. Source: Company announcement

 

“The tenements contain the prospective Mt Benson and Last Chance mines, which were historically the main producers from the Mt McMahon group,” Phillips River Mining said in its ASX announcement.

“The new tenements consolidate Phillips River tenure along the prospective Chidnup Fault zone, which is the focus of gold and copper mineralisation in the Achaean.”

The transaction, subject to certain conditions, also includes Galaxy’s interest in the Mosaic tenement, located 3km from the Kundip project, which contains shallow historic gold workings.

Phillips River will acquire the tenements through awarding Galaxy, at Philips River’s election, $250,000 in cash or the equivalent in fully paid ordinary shares based on the volume weighted average share price for Phillips River shares traded on the Australian Securities Exchange on each of the five consecutive trading days immediately preceding the completion date.

Completion of the acquisition is subject to:

–    The signing of deeds with the relevant native title claimants reflecting the change in ownership;

–    Obtaining Ministerial consent under the Mining Ac t 1978; and

–    Galaxy becoming the registered holder of the Mosaic Tenement. If this condition is not satisfied, then Phillips River has the right to exclude this tenement from the agreement and reduce the consideration to $231,000 or equivalent in Philips River shares. If all conditions are not satisfied or waived within six months then either party may terminate the agreement.