THE BOURSE WHISPERER: Silver Lake Resources (ASX: SLR) has entered into a binding agreement with a private consortium for a dry hire lease over the company’s Murchison gold mill and associated infrastructure.
The term of the Lease is 10 months and will commence in or around January 2015.
Consideration under the lease is $7.9 million payable in equal monthly payments from commencement.
If its wants to do so the provate consortium may extend the lease in two stages:
Stage 1: at the end of the Term, the Term can be extended for a further nine months for consideration of $7.1 million payable in equal monthly payments; and
Stage 2: at the end of the Extended Term, the Term can be extended for a further 12 months for consideration of $9.5 million payable in equal monthly payments.
“The lease of the Murchison Mill is a mutually beneficial agreement for Silver Lake and for the lessee,” Silver Lake Resources manging director Les Davis said in the company’s announcement to the Australian Securities Exchange.
“During the term of the lease, Silver Lake will be assessing a number of strategic alternatives to further enhance the option value on the gold and base metal resources in the Murchison.”