Zuleika Gold Limited (Dampier Gold)
Zuleika Gold Limited (Dampier Gold)
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Australian explorer Kingsland Minerals has laid the foundation to grow the footprint of the Cleo uranium mineralisation based on initial assay results from its maiden drilling program in the historic Pine Creek mining region in the NT.
A dispute over the K2 gold deposit in Western Australia’s Mid West region seems headed for the courts after explorer Dampier Gold announced it will seek $A21.6M compensation from Vango Mining over the termination of their 2017 JV agreement. K2 is part of Vango’s 100%-owned, near-development Marymia project.
Dampier accuses Vango of repeatedly breaching their binding term sheet and JV agreement entitling it to earn 50% of K2.
Dampier Gold has concluded a $A6.5M farm-in/JV with fellow explorer/developer Torian Resources over its Zuleika and Credo Well gold projects near Kalgoorlie in Western Australia.
The deal gives Dampier the right to acquire up to 75% of Zuleika by spending $4M on staged exploration and up to 50% on Credo Well for $2M, along with the consolidation of Dampier’s tenements near Zuleika.
Dampier will also investment $500,000 in Torian, convertible into shares, all subject to shareholder approval.
Australian explorer Dampier Gold has urged shareholders to sit tight while it evaluates an unsolicited all-shares takeover bid from Vango Mining, its 50% JV partner in the K2 underground project at Plutonic Dome, 180km south of Mt Newman in WA.
Vango is offering 2-for-7 shares, equivalent to $A6.7M at 5.6c per Dampier share – an 87% premium to its latest closing price.
The offer is conditional on 50.1% acceptance, and Vango says it has pre-bid commitments over 12.63% of Dampier shares.
Vango has established a new 50-50 JV with fellow Australian explorer Dampier Gold to bring the K2 gold deposit at the Plutonic Dome project in WA into production.
Dampier has continued its association since it sold its residual interest in K2 to Vango last year for $A2.2M plus up to $6M in future contingent payments, and has now agreed to pay up to $3M for exploration and mine development. Vango will manage the development while Dampier manages further exploration.
Vango has begun dewatering at the K2 gold deposit within its 100%-owned Plutonic Dome project in Western Australia's Mid West region in preparation for mining to begin in the Sept 2017 qtr. It says the K2 decline will be assessed for damage as the water level falls throughout the 65-day program, allowing access for targeted drilling and mining preparations.
Four months after selling its remaining interests in the Plutonic Dome project in Western Australia to JV partner Vango Mining, Dampier has finalised non-binding HOA with Vango to fund up to 50% of the development costs of the project's K2 underground mine.
Dampier says the new deal takes advantage of the simpler ownership structure of the project. Its funding contribution, capped at $A3M, will give it 50% of the low-cost K2 development's 50,000-100,000oz resource and accelerate royalty payments under its original sale agreement.
Australian explorer Vango is closer to its first gold production, lining up a $A3M funding deal with former JV partner Dampier Gold for the refurbishment/development of the K2 underground mine at the Plutonic Dome project in WA.
Vango gained 100% of Plutonic Dome mid-year with the $8.4M acquisition of Dampier's 50% JV share. Dampier has now agreed to fund up to half the cost - capped at $3M - of developing K2 in return for 50% of its LOM net profit.
Australian explorer Dampier will begin the search for new projects after the sale of its remaining interest in the Plutonic Dome gold project in Western Australia to JV partner Vango Mining. Vango will pay $A2.2M up front plus $4M contingent on production milestones plus royalties capped at $2M for the 40% interest.
Dampier says it will emerge with more than $4M unencumbered cash with more payments and the royalty stream.
Ord River has revised the DFS for the K2 underground development at its Plutonic Dome gold project in Western Australia following its recent 28% resource upgrade to 103,000oz.
The company, which is earning to 75% interest from Dampier Gold, says pre-tax NPV rises 78% to $A14.87M and IRR 42% to 229%. While maximum capital draw-down rises 4% to $6.6M, C1 cash costs improve 6% to $791/oz.