Gascoyne Resources Ltd. moved to 100% ownership of the Dalgaranga gold project in Western Australia by acquiring the 20% interest of its joint venture partner.
The company acquired the remaining project interest for A$4.5 million in cash and 11 million Gascoyne shares.
In addition, the company will also be required to make a deferred cash payment of A$1.5 million after 30,000 ounces have been produced from the project.
Gascoyne noted in a Dec. 22 release that it is progressing toward moving the Dalgaranga project into the construction phase. The company is finalizing permitting and acquisition of long-lead-time items, while a resource extension drilling on the project is underway.
The company anticipates releasing in January 2017 a number of drill results that are pending in the assay laboratory. The company also expects to update mineral resource at Gilbeys and complete a maiden resource at Gilbeys South prospect.
The recent feasibility study indicated that the Dalgaranga project will have a pretax net present value, at a discount rate of 8%, of A$177 million and an internal rate of return of 65%.
Managing Director Mike Dunbar said the company's cash reserves allow it to fund the aggressive exploration effort at the company's Glenburgh and Dalgaranga projects, both in Western Australia.