PERTH (miningweekly.com) – ASX-listed junior Central Asia Resources has entered into a heads of agreement to divest of its 90% interest in the Dalabai gold project, in Kazakhstan, to local private company Uroven OMR for A$6.9-million.
Some A$400 000 in cash would be paid upon the execution of a formal sales and purchase agreement, with a further A$266 000 due at the start of gold production, if the production is achieved by either September 15 or December 15.
Central Asia would also acquire a 1% gross royalty from all production from the Dalabai project, capped at A$480 000, starting in January 2016, with the royalty payable in 2016 and 2017.
As part of the transaction, Uroven would assume all of the Dalabai related debts, including some A$3.46-million in bank debt and some A$2.3-million in gold line repayments.
Central Asia said the transaction represented a reasonable return for shareholders, given the difficulty in securing finance for the Dalabai project, and its relatively short mine life.
The project currently has a total mineral resource of 3.97-million tonnes, grading 0.98 g/t gold for 125 293 oz of contained gold. Some 180 oz of gold and 165 oz of silver were recovered during 2012 trial mining.
The proceeds from the sale would go towards working capital.
The transaction was subject to shareholder and regulatory approvals.