Dampier Gold Limited announced that it has agreed the sale of its remaining equity in the Plutonic Dome Gold Project to Vango Mining for $6.2 million.
According to Dampier, the agreement excludes 6 tenements which are to be separately sold to Northern Star Resources.
The transaction is subject to Dampier Gold shareholder and third party approvals, as well as to Vango paying Dampier Gold a $2.2 million within 14 days after the satisfaction of waiver of the condition precedent.
The agreement will see Vango execute 4 separate payments of $1,000,000 on reaching certain production milestones ranging from 45,000 to 300,000 ounces of gold.
Vango will also pay a production royalty on overall production from the project tenements. Dampier said the royalty will vary depending on the gold price and will be capped at A$2 million.
The Directors of Dampier Gold said that sale of the Project will place the company in a strong cash position and provide it with a potential additional cash flow from the mine.