mt freda stockpile sale for $2.5m cash · copperchem signs term sheet to purchase mt freda...
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Ausmex Mining Group Limited ACN 148 860 299
T | (02) 8315 3268 A | Level 13/50 Carrington Street, Sydney NSW 2000 E | [email protected]
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27thFebruary2018
ASXMARKETRELEASE
COPPERCHEMSIGNSTERMSHEETTOPURCHASEMTFREDAMINERALISEDSTOCKPILES FOR$2.5MILLIONCASHPLUSADDITIONALEXPLORATIONGROUNDADJOINGTHEMTFREDAMININGLEASE
AusmexMining Group Ltd ASX: AMG is pleased to announce today that CopperChem (CCL), anunlistedAustralianownedandoperatedcompany,beingasubsidiaryofWashingtonH.SoulPattinsonand Company Limited (WHSP) ASX:SOL, has signed a term sheet (“Term Sheet”) to purchase themineralisedstockpileslocatedonthesurfaceatMtFredafor$2.5millioncashconsideration,plusforAMGtotakeupan80%beneficial interest in twoexplorationsub-blocksthatadjointheMtFredaMiningLease(the“Acquisition”).
CCLwhommanageExcoResourcesmajorprojectsfollowingthe100%AcquisitionofExcoResourcesbyWHSP in late 2012, intend to truck the stockpiles ~ 40km to the CopperChemoperatedGreatAustralianMine(GAM),650ktpaCIPoreprocessingfacilityinCloncurry.
Photo1.CCLownedandoperatedGreatAustralianMine650ktpaCIPprocessingplant,Cloncurry.For
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Ausmex Mining Group Limited ACN 148 860 299
T | (02) 8315 3268 A | Level 13/50 Carrington Street, Sydney NSW 2000 E | [email protected]
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Plan1.LocationandproximityplanoftheAusmexcontrolledhighgradegoldprojects“GildedRose”and“MtFreda”tothirdpartygoldproducingfacilities.MtFredastockpileswillbetruckedtotheCopperChemoperatedGreatAustralianMine(GAM)650ktpaCIPprocessingfacilityinCloncurry.
TheprincipaltermsoftheTermSheetareasfollowing:
ThecashconsiderationfortheAcquisitionistwomillionandfivehundredthousandAustralianDollars($2,500,000),tobepaidasfollows:
(i) 10%($250,000)refundabledepositpayablewithinfive(5)businessdaysofsigningtheTermSheet;
(ii) 60% ($1,500,000) within ten (10) business days of executing the Sales and PurchaseAgreement(SPA);and
(iii) thebalance($750,000)tobepaidwithinthirty(30)daysofthesecondpayment.F
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Ausmex Mining Group Limited ACN 148 860 299
T | (02) 8315 3268 A | Level 13/50 Carrington Street, Sydney NSW 2000 E | [email protected]
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Inadditiontothecashconsideration,80%beneficialinterestoftwosub-blocksEPM15923CLON825Pand CLON 825U (the “Sub-blocks”) is to be transferred by Exco to Ausmex Resources Pty Ltd(“Ausmex”),awhollyownedsubsidiaryofAMG.AjointventureistobeestablishedfortheSub-blockswherebyAusmexwillhold80%andExcoResourcesLimited20%oftheinterest.Ausmexwillalsobeactingasthemanagerofthejointventure.
TheTermSheetwillterminateupontheearlieroftheexecutionoftheSPAor31March2018.
TheSPAissubjecttotheapprovaloftheBoardofCCL,theBoardofAusmexandtheBoardofSpinifexMinesPtyLtd.
FundingforadditionalDrilling
AMGpreviouslyannouncedtwomajordiscoveriesin2017includinghighgradecobaltdrillingresultsfromwithin theMt Freda complex, (Refer ASX 6th December 2017). The funds received from thedisposalofthegoldorestockpilecombinedwithcurrentAMGcashreservesonhand,willallowthecompanytocontinueitsaggressivedrillingandexplorationprogramsfocusingonhighgradecobaltwithin the Mt Freda complex, in addition to continuing resource drilling on the two major goldprojects,GildedRoseandMtFreda.AnupgradeonpreviousJORC(2004)resourcestomaidenJORC(2012)resourcesonbothofthesetwopreviouslyproducinggoldprojectsisexpectedinMay2018.
Theadditionalconsiderationofthe80%beneficialinterestinthetwoadditionalsubblocks825P&825U fromwithin the Exco Resources owned EPM15923 (Refer plan 2 below) provides additionalworkingroomforAusmextopotentiallyincreasethecurrentMtFredaMiningLeaseforanyfutureminingexpansionsandinfrastructurerequirements.
Additionalshort-termcashflowpotential
ThecompanyhasalsoprioritizedadditionaldrillingonthethreehighgradeCopperprospects“TheJoker”(ReferASXannouncement19thJanuary2018),“TheAnswer”grantedminingLease(ReferASXannouncement29thJanuary2018),and“TheTrump”grantedmininglease(ReferASXannouncement2ndFebruary2018).AllthreehighgradecopperprojectshavetheabilitytobeminedfordeliverytolocalmineralprocessorsthathaveexcesscapacityandhaveapproachedAusmexforbothcopperoxideandcoppersulphideorepurchases.
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Ausmex Mining Group Limited ACN 148 860 299
T | (02) 8315 3268 A | Level 13/50 Carrington Street, Sydney NSW 2000 E | [email protected]
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Plan2.LocationplanoftheMtFredacomplexandexplorationsubblocksEPM15923825U&825PthatadjoinboththeMtFredaML2752andthehighlyprospectivehigh-gradegoldtenementEPM14163(ReferASXannouncement29thNovember2017forresults).AusmexnowhasthecapacitytosignificantlyextendtheMtFredaminingleaseforanypotentialmineexpansionandinfrastructurerequirements.
AusmexMDMrMattMorgansaid,
“2018justkeepsgettingbetterandbetterforAusmexshareholders.Followingonfromfoursetsofhighgradecopperdrillingresultsoverfourweeksatthestartoftheyear,AusmexisnowwellfundedF
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Ausmex Mining Group Limited ACN 148 860 299
T | (02) 8315 3268 A | Level 13/50 Carrington Street, Sydney NSW 2000 E | [email protected]
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forthenextdrillingprograminCloncurryfocusingonadditionalhigh-gradeCobaltandcopper,plusJORC(2012)resourceupgradesatMtFredaandGildedRose.TheastuteacquisitionoftheprojectsinCloncurrybyAusmex,alllocatedclosetothirdpartycopperandgoldprocessingfacilitiesisstartingtobearfruitwiththecashsaleoftheMtFredastockpilesfor$2.5m.TheadditionalexplorationsubblocksareahighlyvaluablegainforAusmex,providingadditionalcapacitytopotentiallyexpandthecurrentMtFredaMiningLeasesforfutureminingandinfrastructurerequirements.”
“WithMtFredarapidlydevelopingintoahigh-gradegoldandcobaltcomplexwithroomtomove,plusadditional copper and gold projects close to third party processing facilities with spare capacity,Ausmextrulyhasthepotentialtobeanemergingproducer.”
Ends.
Forfurtherinformation,pleasecontact:
MattMorganManagingDirectorAusmexMiningGroupLtdForwardLookingStatements
Thematerialsmayincludeforwardlookingstatements.Forwardlookingstatementsinherentlyinvolvesubjective judgement, and analysis and are subject to significant uncertainties, risks, andcontingencies,manyofwhichareoutsidethecontrolof,andmaybeunknownto,thecompany.
Actualresultsanddevelopmentsmayvarymateriallyfromthatexpressedinthesematerials.Thetypesofuncertaintieswhicharerelevanttothecompanymayinclude,butarenot limitedto,commodityprices,politicaluncertainty,changestotheregulatoryframeworkwhichappliestothebusinessofthecompanyandgeneraleconomicconditions.Giventheseuncertainties, readersarecautionednottoplaceunduerelianceonforwardlookingstatements.
Any forward-looking statements in thesematerials speak only at the date of issue. Subject to anycontinuingobligationsunderapplicablelaworrelevantstockexchangelistingrules,thecompanydoesnot undertake any obligation to publicly update or revise any of the forward-looking statements,changesinevents,conditionsorcircumstancesonwhichanystatementisbased.
CompetentPersonStatement
Statements contained in this report relating to exploration results and potential are based oninformation compiled byMr.MatthewMorgan, who is amember of the Australasian Institute ofMiningandMetallurgy(AusIMM). Mr.Morgan is theManagingDirectorofAusmexMiningGroupLimitedandGeologistwhomhassufficientrelevantexperienceinrelationtothemineralizationstylesbeingreportedontoqualifyasaCompetentPersonasdefinedintheAustralianCodeforReportingofIdentifiedMineralresourcesandOrereserves(JORCCode2012).Mr.Morganconsentstotheuseofthisinformationinthisreportintheformandcontextinwhichitappears.F
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