Mount Magnet South completes sale of Kirkalocka gold project

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Emerging gold producer Mount Magnet South (MMS) has announced that it has completed the sale of its Kirkalocka gold project to Minjar Gold for $1,861,825.

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MMS said that the settlement amount also includes reimbursement of tenement rents paid by MMS in accordance with the terms of the Tenement Sale Agreement.

“An amount of $50,000 has also been deducted from the settlement amount and will be held escrow to meet any costs associated with keeping the tenements encompassed by the Tenement Sale Agreement in good standing,” the company said in an ASX release.

“In addition to the above, Minjar will pay the Contingent Amount to Newcrest Mining in accordance with the terms of the Equigold Agreement as a result of the disposal of the Kirkalocka Plant being a Contingent Event under that agreement.”

Mount Magnet South said it retains ownership of tenements E59/1361, E59/1778, E59/1962 and E59/2145 which are known to hold significant iron mineralisation, with all gold rights associated with those tenements granted to Minjar.

The company said it will continue its efforts to identify new project opportunities and focus on acquiring drill-ready exploration projects that are not located in regions with “unacceptable” political risks. It said that it is open to consider various deal structures ranging from joint venture farm-in through to direct project equity or corporate acquisition.