SYDNEY: Golden Mile Resources Ltd has signed a Binding Terms Sheet to acquire fourteen (14) granted prospecting licences from CGM(WA) Pty Ltd, a wholly owned subsidiary of Chalice Gold Mines Limited.
The acquisition of the Prospecting Licences is subject to satisfactory completion of due diligence. These Prospecting Licences are adjacent to the Company’s existing ground-holdings at the Leonora East Gold Project located in the North-Eastern Goldfields of Western Australia.
The Prospecting Licences have a collective area of approximately 2,600ha and a total statutory expenditure commitment of approximately $100,000per year.
An active gold exploration program is currently underway on the Leonora East tenement and this program will be progressively expanded to incorporate the newly acquired areas. The Prospecting Licences being acquired from CGM(WA) link the prospective Monarch Gold Trend and the Benalla Gold Trend and contain a number of gold exploration targets that the Company is keen to test.
In consideration for the acquisition of the Prospecting Licences, the Company has agreed to grant CGM(WA) a 1.25% net smelter royalty in respect of any minerals extracted and recovered from the Prospecting Licences. Licences P37/8702-8711 are also subject to a 5% free carried interest in favour of Ellesmere Geological Services, until a Definitive Feasibility Study is completed.