Alt Resources Ltd. said Oct. 23 that it executed a non-binding term sheet with Blue Cap Mining Pty. Ltd. for the provision of a mining services agreement at the Tim's Find gold project within the company's Mount Ida and Bottle Creek gold projects in Western Australia.

Under the agreement, Blue Cap will provide mining, transport, processing, drill and blast and associated mining services to Alt Resources.

The proposed agreement will be an open book basis with Blue Cap providing a A$3.0 million working capital facility for the initial mining operations and will continue until ore sales allow full payment of all invoices. The facility is to be fully paid within six months from first drawdown, subject to a force majeure clause.

In line with the provision of the working capital facility and overall performance of the contract, Blue Cap is to receive a facility fee comprised of an establishment fee of A$10,000 upon document execution, issuance of 50 million ordinary shares on signing of the formal documentation to be issued in exchange for a credit of A$1.6 million against the value of the total contracted works, and ordinary shares with an issue price of 3.2 cents that will have a voluntary restriction period of 12 months from the issuance date.