Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Gold exploration company Cervantes (CVS) has settled its sale of the Albury Heath Project to Big Bell Gold Operations (BBGO)
  • BBGO, a Westgold Resources subsidiary, paid Cervantes 330,313 Westgold ordinary shares worth $700,000
  • However, these shares are only part of the full consideration for the Albury Heath project
  • Following the transaction, Cervantes is seeking to upgrade its operations at the Primrose Project at Payne’s Find
  • Cervantes shares remain suspended from quotation, last trading for 0.4 cents per share

Gold exploration company Cervantes (CVS) has settled its sale of the Albury Heath Project to Big Bell Gold Operations (BBGO).

BBGO is a wholly-owned subsidiary of gold miner Westgold Resources.

The Albury Heath Project is a historic gold mine located near Meekatharra, Western Australia. Cervantes first acquired a prospecting licence for the mine in October 2016, to add to its current exploration licence.

The company intersected high-grade gold at Albury Health in July 2018, and continued to identify targets there in 2019. The project reportedly has had bonanza-grade gold discovered in the area.

Per the agreement, BBGO paid Cervantes 330,313 fully paid ordinary shares in Westgold Resources, worth $700,000. However, these shares are only part of the full consideration for the Albury Heath project. 

After entering this transaction, Cervantes will focus on upgrading its operations at the Primrose Project at Payne’s Find. The sale may also help Cervantes move towards early cash flow.

The company stated that it is extremely pleased with this outcome, considering the challenges it, and other junior companies, have had to deal with in recent years. One such challenge has included avoiding the heavy dilution of the company’s shares. 

Cervantes also congratulated Big Bell Gold Operations and Westgold Resources on the purchase of the Albury Heath Project.

“We wish Westgold every success with the project, and a higher gold price to benefit both companies over the next few years”, the company wrote. 

Cervantes shares remain suspended from quotation, last trading for 0.4 cents per share.

CVS by the numbers
More From The Market Herald
AusQuest (ASX:AQD) - Managing Director, Graeme Drew

" AusQuest (ASX:AQD) gets green light to drill at Los Otros

AusQuest (AQD) has been granted permits to begin drilling at its Los Otros Porphyry Copper Project in southern Peru.

" Albion Resources (ASX:ALB) eyes maiden drilling program at Lennard Shelf

Albion Resources (ALB) has received heritage clearance for its maiden drilling program at Pilbara East which is expected to kick off this month.
Sunshine Gold (ASX:SHN) - Managing Director, Damien Keys

" Sunshine Gold (ASX:SHN) confirms copper-molybdenum system at Titov

Sunshine Gold (SHN) has confirmed a large-scale copper-molybdenum system at the Titov prospect at Ravenswood West.
Sunrise Energy Metals (ASX:SRL) - CEO, Sam Riggall

" Sunrise Energy Metals (ASX:SRL) advances self-titled battery project

Sunrise Energy Metals (SRL) spent much of the September quarter focused on progressing its Sunrise Battery Materials Project in NSW.