Mining is scheduled to start Oct. 1 at the Geko gold property in Western Australia after Bulletin Resources Ltd. moved to resolve all legal disputes between its Gekogold Pty. Ltd. unit and Coolgardie Minerals Ltd., which secured all necessary approvals in mid-January.
The two parties recently entered into mediation regarding legal action Gekogold initiated against Coolgardie in October 2017 related to a tenements acquisition agreement.
Bulletin Resources said Feb. 22 that the companies signed a heads of agreement, which confirmed an existing gold royalty and entitles Gekogold to 30% of profits from the sale of minerals from the Geko open pit after A$9 million in profits are realized.
The gold royalty is payable in cash based on average Australian spot gold prices for the preceding quarter and comprises 10% of the first 25,000 ounces produced, 4% of the next 60,039 ounces and 2% of all production exceeding 85,039 ounces.
In addition, Gekogold and Coolgardie agreed to form a 30/70 joint venture on the tenement area outside the project, while Gekogold will subscribe for at least A$500,000 in shares in Coolgardie's proposed IPO.
The deal is expected to be finalized by March 6, with all legal proceedings to be dismissed shortly thereafter.