Excelsior Gold has announced that it has acted to extinguish the joint venture obligations on mining lease M24/943 and has finalised the purchase of the remaining 5% interest in the tenement in the lead up to ore mining and processing from the Jackorite open pit.
The Jackorite open pit is subject to a long standing joint venture from February 2000 by which Excelsior Gold owns 95% interest in the tenement and Mr Denzle Norbert Schorer retains a free carried 5% interest up to the start of mining.
Under the terms of the joint venture, Schorer had the right to contribute to the joint venture expenditure or offer his interest to Excelsior Gold on commencement of the mining.
Excelsior said it has paid $120,000 for the 5% interest and now holds unencumbered 100% interest in the tenement.
“The purchase of the Schorer interest simplifies the mining of the Jackorite pit and the accounting for ore produced,” said Excelsior Gold’s Managing Director David Hamlyn.
“The price paid to Schorer was reasonable and it leaves Excelsior Gold fully exposed to potential grade and gold price upside.”
Mining in the Jackorite open pit commenced in late December 2015 and the pit is expected to produce approximately 38,500 tonnes of ore grading 2.50g/t Au by the end of February 2016.