Ausmex Mining Group Ltd. entered into a binding term sheet to sell its Gilded Rose gold project in Queensland, Australia, to Jin Resources (HK) Ltd.
The company said Sept. 20 that it will receive A$4 million in cash to be paid in stages, including A$1.5 million after the first 10,000 ounces of gold production at the project.
Ausmex said it has already received a A$100,000 option fee for conducting due diligence inquiries, and an additional A$2.4 million will be due on completion by Nov. 15.
The company will use the A$2.5 million cash payment combined with current funds for additional working capital to continue resource definition at the Mount Freda complex while progressing the Golden Mile mining lease application in Queensland and a maiden drilling program at the Burra copper-gold project in South Australia.
Jin Resources intends to fund the purchase internally, aiming to fast-track gold production at Gilded Rose.
