Burbanks mill gets new buyer
PERTH (miningweekly.com) – Junior gold company Maximus Resources has entered into a new asset sale agreement for its Burbanks gold mill, in Western Australia.
The ASX-listed company has reached an agreement with Mineral Ventures to acquire the asset for an initial A$2.8-million, with a final payment of A$2.4-million to be made within 72 hours of the removal of the existing mortgage on the Burbanks tenements by the former mill buyers.
Maximus in April this year struck an initial agreement with privately held Adaman Resources to divest of the Burbanks project for A$5.8-million. However, Adaman subsidiary SMS Innovation failed to complete the sale agreement commitments to acquire the project by August 31.
Maximus will repay the A$2.5-million of advanced loans back to SMS.
The company told shareholders on Tuesday that the asset sale will likely be completed during September, with the project remaining on standby until the sale is finalised.
Under the sales agreement, Mineral Ventures will also secure up to 24 months of milling capacity, at 5 000 t a month at Burbanks, starting in 2020, with the option to extend the term by agreement.
Maximus said that securing a 5 000-t-a-month milling capacity for a minimum of 24 months ensured that the company could continue with the development of its nearby Spargoville gold projects, and accelerate the approvals documentation, with enhanced financial capacity, to continue pursuing projects for potential acquisition.
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