De Grey Mining elects to proceed to 100% of Pilbara Gold Project
West Perth, WA / January 30, 2018 / JMN Wire / De Grey Mining Limited (ASX: DEG) (“De Grey”, “DEG”, “the Company”) is pleased to announce that it has decided to proceed to acquire all the shares in Indee Gold Pty Ltd (“Indee Gold”) from Northwest Non-Ferrous Australian Mining Pty Ltd (“NNAM”).
This decision to proceed with the acquisition of Indee Gold is integral to the consolidation of the overall Pilbara Gold Project ownership. On settlement, De Grey will own 100% of the tenement package which contains greater than 1.2M oz of established gold resources.
De Grey Chairman, Simon Lill, commented that:
“De Grey has expended considerable funds in exploration and feasibility work over the last 12 months on the Indee Project to confirm that the metrics of the Indee acquisition make sense. We are comfortable that acquiring Indee is the right path forward as the economic decision will only improve with further work planned through the next 12 months. The Indee and Turner River Projects combine as the Pilbara Gold Project with positive economics based on a simple open pit mining strategy, but with substantial exploration upside remaining. We thank Northwest for their ongoing support.”
- De Grey elects to proceed to acquire 100% of Indee Gold Pty Ltd from Northwest Non Ferrous Australian Mining Pty Ltd
- Proposed acquisition:
- consolidates ownership of Pilbara tenements with >1.2Moz gold resources and significant exploration upside
- provides De Grey the opportunity to emerge as a significant future Australian gold producer
- Detailed Sale Agreement to be executed by 8 February 2018.
- Previously announced extended terms amended as below:
- $1.5M to be paid on execution of detailed Sale Agreement;
- Settlement extended to 24 January 2019;
- An additional extension is available until 24 July 2019 through further payment of $700,000 on or before 24 January 2019;
- Full consideration remains A$15M, less all previous payments, and to include A$3M equity component.
- Amended terms are subject to execution of Sale Agreement and will assist De Grey’s cashflow through 2018