Bulletin Resources Limited (ASX: BNR) is an ASX-listed metals and mining sector company. It holds interest in the Geko Gold project located, approximately 15 kilometres north of the Bullabulling Gold Mine, in the shire of Coolgardie, Western Australia. The company was founded and listed on ASX in 2010.
Bulletin Resources Limited (ASX: BNR) recently updated the market on the appointment of Pitcher Partners as Voluntary Administrators to its joint venture partner Coolgardie Minerals Limited (CM1).
In 2018, Bulletin via its wholly owned subsidiary Gekogold Pty Ltd (Gekogold) executed a Deed of Settlement and Release with Coolgardie Minerals in addition to a Profit Share Agreement, Exploration and Production Joint Venture Agreement for Geko Gold project. The joint venture underscores the 30:70 partnership between Gekogold and CM1 on the basis of the tenement area outside the project.
Under these arrangements, Gekogold will be entitled to receive 30% of the profit earned from the sale of minerals after CM1 has earned $9 million profit from the project. Further, Gekogold will be entitled to retain a royalty payable in cash, limited to 10% of the first 25,000 oz Au produced, 4% of the next 60,039 oz Au produced and 2% of all production over and above 85,039 oz Au.
On the cost front, Gekogold does not contributes to the costs of the Geko Gold project and is reportedly not responsible for any losses incurred on the project. However, it has subscribed for $500,000 in fully paid ordinary shares in CM1’s Initial Public Offering.
The Geko Gold project is located in the shire of Coolgardie, Western Australia, about 25 kilometres west north-west of the township of Coolgardie, or approximately 15 kilometres north of the Bullabulling Gold Mine.
During the quarter ended 31 December 2018, CM1 reportedly commenced the gold production of oxide ore from the Geko Gold Mine and entered into an Ore Purchase agreement with Northern Star Resources Limited (ASX: NST).
On 31 December 2018, CM1 announced that the third parcel of oxide ore from the Geko gold mine pit has been sold to NST and that NST has the option to purchase an additional circa 90,000 tonnes of oxide ore with a grade above 2.75g/t Au. This sale triggered the commencement of BNR’s entitlement to receipt of royalties under the terms of Deed of Settlement and Release with Coolgardie Minerals. Accordingly, Bulletin received the royalty of $248,000 on 31 January 2019.
It has also been reported that an initial exploration drilling program has been undertaken at its Geko Project to test a new, highly prospective gold mineralisation zone which may have the potential to extend the resource. The initial drilling returned positive outcome with mineralisation intersected in three of the four holes drilled, as reported by CM1.
Bulletin further informed the market that the appointment of CM1’s Voluntary Administrators and subsequent appointment of Cor Cordis as Receivers and Managers to CM1 would not affect the company’s interest in the Gekogold Project. The company has also decided not to go further with the acquisition of Territory’s Mareeba Gold Project for 80% interest as on 25 January 2019. Bulletin advised that it had withdrawn from the proposed acquisition and advised Territory Minerals Limited that it had formally terminated the Sale and Purchase Agreement (SPA).
The company today reported the cash and investments totalling $2.47 million as at the quarter ended 31 March 2019.
BNR last traded on 16 April 2019 at $0.018 on ASX. The market capitalization stands at $3.23 million, with 179.29 million shares outstanding.
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