Sep 21, 2019

Ausmex offloads Gilded Rose gold project for $4m

Ausmex offloads Gilded Rose gold project for $4m

Ausmex Mining has sold its Gilded Rose gold project near Cloncurry to a Hong Kong-registered company for $4 million.

Ausmex last month revealed plans for a multi-pit Cloncurry mining hub, operating from as early as next year as it pursues a mining leases for its Golden Mile high-grade gold projects.

These would complement its Mt Freda mining leases and ore from the projects would be processed at Round Oak’s Great Australia CIP gold processing plant.

The Gilded Rose sale includes a Tranch 1 cash payment which Ausmex plans to add to working capital to continue to define JORC resources at the Mt Freda complex, while progressing the Golden Mile mining lease application.

The company said the funds would also go towards a maiden drilling program at the exciting Burra copper and gold project in South Australia.

Gilded Rose purchaser Jin Resources has already paid a $100,000 option fee to conduct due diligence inquiries and will pay a further $2.4 million by November 15.

A Tranche 2 payment of $1.5 million is due to be made after the first 10,000oz of gold production at Gilded Rose.