- Maximus Resources will now sell its Burbanks Gold Mill to Mineral Ventures after an initial asset purchase agreement with SMS Innovation fell through
- Once SMS’ outstanding mortgage on the tenement has been released, Mineral Ventures will have 72 hours to complete the sale and transfer the remaining $2.4 million to Maximus
- Under the agreement, Maximus will also undertake up to two years worth of milling capacity from 2020
Maximus Resources will sell its Burbanks Gold Mill to Mineral Ventures after an initial asset purchase agreement (APA) with SMS Innovation fell through.
The new purchaser is set to obtain 100 per cent of the Eastern Goldfields tenement and has already paid a $2.8 million deposit.
SMS Innovation, a subsidiary of Adaman Resources, was poised to purchase the mill after entering the APA with Maximus in April this year.
SMS made an initial sales deposit of $2.5 million, but purchase agreement disputes meant the company failed to pay the remaining $2.6 million ahead of the sales closure on August 31.
Following the termination of the APA with SMS Innovation, Maximus has since reached a new agreement with the Kalgoorlie-based, privately-owned Mineral Ventures.
Once SMS’ outstanding mortgage on the tenement has been released, Mineral Ventures will have 72 hours to complete the sale and transfer the remaining $2.4 million to Maximus, bringing their total earnings from the deal to $5.2 million.
Mineral Ventures has announced its intention to recommence gold processing operations at the Burbank Gold Mill once the deal has been finalised. The company has also noted there is potential to offer toll milling operations to third party gold producers.
But for now, work has ceased at the mill until the sale is finalised and it’s expected that security will remain the only on-site personnel until the transaction is finalised later this month.
Under the agreement, Maximus will also undertake up to two years worth of milling capacity from 2020. The company will have the chance to secure over 5000 tonnes per month at the Burbank Mill, which will assist in the development of their nearby Spargoville gold projects.
The APA announcement comes as gold continues to steadily rise in value, currently worth just under $1500 per ounce.
Maximus’ share price rose by 3.39 per cent following news of the sale, currently sitting at $0.061.