Exco and Polymetals Group Pty Ltd. have agreed the final structure of the Joint Venture Agreement envisaged by the Heads of Agreement (HOA) entered into on 27 March 2008 in relation to the White Dam Gold Project.
The White Dam Gold Project, which is located in South Australia approximately 80 kilometres west of Broken Hill, is an advanced development project containing a resource inventory of 330,400 ounces of gold. Subject to final approvals being obtained, the parties anticipate that the project can commence construction in mid 2009, with first gold production scheduled by late 2009/early 2010.
Polymetals will acquire a 25% interest in the project for a consideration of A$2.8m. The consideration will be settled by the recognition by Exco of A$1m of expenditure on the project by Polymetals since the date of the HOA, and a payment of A$1.8m in cash upon the signing of the Joint Venture Agreement documentation.
Exco and Polymetals will also enter into a management agreement, appointing Polymetals as project manager. Polymetals prior ownership and involvement in the White Dam Gold Project provides them with a significant advantage as project manager.
About Exco Resources Limited
Exco Resources Ltd (ASX:EXS)(PINK:EXRSF) has a clear development strategy for its highly prospective project portfolio. The portfolio currently includes the Cloncurry Copper Project in NW Queensland and the White Dam Gold Project in South Australia.
Exco Resources Limited