Blackham Resources Limited (ASX:BLK) Matilda Gold Mine Acquisition - Amended
Perth, Oct 18, 2011 AEST (ABN Newswire) - Blackham Resources Limited (
ASX:BLK) is pleased to announce that it has elected under the Heads of Agreement announced on the 21st September 20011, to formally proceed with 100% acquisition of the Matilda and Williamson Gold Mines and the Regents, Carol Prior, Galaxy Gold Deposits in the Wiluna gold belt of Western Australia (Project). The due diligence over the project supports the decision to acquire the Project.
Blackham's Managing Director, Bryan Dixon made the following statement, "Initially on entering into the Heads of Agreement, Management were focused on extensions to the existing gold deposits down plunge. During the due diligence phase it has become very apparent that substantial potential exists to extend these deposits along strike in the shallow oxide material as well."
Blackham's main focus will initially be to explore for new gold resources in and around the Matilda Mine. Matilda is a large gold system which has been mined in most places to less than 50m with 7 small pits over a strike of 3.5kms. Most of the existing Matilda deposits remain open both along strike and at depth. Asarco ceased production at Matilda in 1996 when the gold price was about US$400/oz. Production from all previous owners reached approximately 280,000oz from 7 openpits.
Blackham intends to target the extensions along strike and the high grade extensions below the existing pits then remodel the resources and re-optimise pits based upon current gold prices.
Blackham has begun planning for its initial drilling programmes aimed at commencing in December, subject to rig availability and regulatory approvals. Little systematic regional exploration has taken place on the Project since Great Central Mines sold the Wiluna Mine and surrounding package to Normandy in 2002. Since 1996, the Project has been owned by numerous companies and most of the exploration has focused on the neighbouring Mine.
Further information on the Matilda Gold Project can be found in Blackham's announcements of the 21st September 2011 and 11th October 2011.
TERMS OF THE AGREEMENT
Blackham has agreed to purchase and the Vendors have agreed to sell to Blackham, 100% of the entire issued share capital of Kimba Resources Pty Ltd (Kimba) for the following consideration to be issued to the Vendors or their nominee(s) on Completion:
(a) Cash on settlement of $600,000;
(b) 2,400,000 fully paid ordinary shares in Blackham on settlement;
(c) $150,000 cash upon delineation of gold resources totalling 500,000 ounces gold (JORC);
(d) $150,000 cash upon delineation of gold resources totalling 750,000 ounces gold (JORC);
(e) $250,000 cash upon production of 50,000 ounces gold;
(f) A royalty of 1% net operating profit royalty on Nickel production profits.
Kimba is obliged to pay certain gold and nickel royalties on parts of the tenure and is required to pay $500,000 to the previous owner on first gold pour payment. Kimba will be liable for the remaining rehabilitation on the Project and is required to pay $2.249 million in environmental bonds on transfer of the mining leases from the previous owner to the Kimba.
The Agreement covers 18 mining leases, 5 retention licenses, 12 exploration licenses and 24 prospecting licenses covering an area of over 500km2 near Wiluna, Western Australia.
This Agreement and the transactions contemplated by it are conditional upon Blackham meeting any regulatory approvals and is contemplated to be completed within the next month.
Further information on the terms of the agreement can be found in Blackham's announcement of the 21st September 2011.
About Wiluna Mining Corporation Ltd
Wiluna Mining Corporation (ASX:WMC) (OTCMKTS:WMXCF) is a Perth based, ASX listed gold mining company that controls over 1,600 square kilometres of the Yilgarn Craton in the Northern Goldfields of WA. The Yilgarn Craton has a historic and current gold endowment of over 380 million ounces, making it one of most prolific gold regions in the world. The Company owns 100% of the Wiluna Gold Operation which has a defined resource of 8.04M oz at 1.67 g/t au. In May 2019, a new highly skilled management team took control of the Company with a clear plan to leverage the Wiluna Gold Operation's multi-million-ounce potential.
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