Pacific Bauxite Ltd. said Aug. 12 that Cylinder Cove Pty. Ltd. decided not to proceed with the A$1.5 million acquisition of the former's remaining interests in three projects in Australia.
The deal signed in April includes a 2% sales royalty on the Mount Richardson iron ore project in Western Australia, A$5 million in milestone payments and a 1.5% gross revenue royalty on the Rogetta iron ore project in Tasmania, and a royalty of A$2 per tonne of gold mined from the Golden Camel gold project in Victoria.
Pacific Bauxite had granted several deadline extensions to provide Cylinder Cove more time to undertake due diligence.
In April, Pacific Bauxite won an appeal to reinstate its prospecting license for the Nendo bauxite project in the Solomon Islands after the government revoked it.