Maximus Resources Ltd. said Sept. 9 that it struck a new deal to sell the Burbanks gold mill in Western Australia to privately owned Mineral Ventures Pty. Ltd. for A$5.2 million after failing to close a A$5.8 million deal to another party.
Maximus said it received a deposit of A$2.8 million from Mineral Ventures. The latter will make the final payment of A$2.4 million within 72 hours of the removal of the existing mortgage on the Burbanks tenements by former mill buyer SMS Innovation Pty. Ltd., a subsidiary of Adaman Resources Pty. Ltd.
Maximus also secured up to 24 months of milling capacity at 5,000 tonnes per month at Burbanks, starting in 2020, with the option to extend the agreement. It plans to use the mill to process ore from its nearby Spargoville gold properties.
Maximus expects to close the deal in September.
Mineral Ventures is planning to start gold processing at the project and potentially offer toll mining operations to third parties.
The original sale to SMS Innovation was slated to close in May. However, the companies were not able to agree to new terms, and SMS did not make the final payment by the Aug. 31 due date.
Maximus will repay A$2.5 million in loans by SMS.
