Talga Resources has announced that it has granted Beatons Creek Gold an option to purchase three of its four Australian gold assets in the Pilbara region of WA for up to $1 million in cash and a royalty on production.
The option – which pertains to the Mosquito Creek, Talga Talga and Warrawoona Projects – can be exercised within an initial four month period unless Beatons pays a further non-refundable amount of $200,000 to extend the Option period to two years.
This will allow the company to purchase each project as a separate asset for $250,000.
Talga will retain 100% equity in the Projects until the purchase price is paid in full, and will be due a 2.25% gross royalty payable on the net smelter return of minerals extracted from any of the Projects prior to exercise of the Option, and 1.5% in perpetuity thereafter.
“The Board of Talga believes this to be an excellent outcome. The Company can now focus, with less distraction, on its graphene and graphite opportunities,” Talga said in a statement to the ASX.
“Proceeds from the sale and any royalty payments will be applied directly to Talga’s graphite and graphene developments in Sweden and Germany.”
Beatons, a wholly owned subsidiary of Novo Resources Corporation, recently acquired three mining leases at Beatons Creek from Millennium Minerals, which now form part of Novo’s Beatons Creek gold project near Nullagine in the East Pilbara district of Western Australia.