GFI Grants Option And Earning Rights To EXX Over Laverton Tenement

  • Feb 08, 2019 AEDT
  • Team Kalkine
GFI Grants Option And Earning Rights To EXX Over Laverton Tenement

Global Fortune Investment Limited (ASX: GFI), formerly known as China Mining Limited, is primarily engaged in the exploration and development of mineral properties. It was established in 2011 and based out of Sydney with five subsidiaries located in Hong Kong and Australia for supporting the cross-border trade.

It operates through three business segments including mineral exploration, corporate investments; and the food and beverage products trade.  Lately, the company’s primary focus remains on the development of high potential Horse Rock Project, formerly named Yarri Range Project, comprising four exploration licenses, E31/859, E31/887, E 31/1147 and E 31/1122.

On February 8th, 2019, the company announced to have signed a formal heads of agreement with Expose Resources Limited (EXX) granting an option and earning rights to EXX over its Western Australian Exploration Licence E31/1122 near Laverton in Goldfields region of Western Australia.

In the course of the transaction, Expose Resources has been charged $ 4,000 in lieu of the option to earn an interest in the Tenement. The option can be exercised within a deadline of 10 business days after the company gets listed on the Australian Securities Exchange (ASX) and begins trading as EXX. Whenever the option is exercised, EXX will have the Scope of potentially earning up to 85% interest in two instalments as per the terms of the deal.

Firstly, EXX will have to pay $ 10,000 to the company upon option exercise and then must also spend $ 400,000 throughout two years on the Tenement, with a minimum of $ 200,000 to be spent in the first year so as to receive the initial 51% interest in the Tenement. Subsequently, EXX may opt to earn a further 34% interest by spending an additional $ 400,000 on the Tenement over the next two years, again with a minimum of $ 200,000 to be paid in the first 12 months. On earning total 85%, GFI shall convert residual 15% stake into a 15% net smelter royalty on gold production in excess of 100K ounces.

Also, upon exercising the option, the parties are expected to enter into an unincorporated joint venture (JV) to better handle the commitments mentioned in the agreement.

In the Annual Report for the year ended June 30th, 2018 (FY2018), the group posted sales at $ 10.04 million before costs as compared to $ 9.88 million in FY2017. As per the cash flow statement, the net increase in cash held and cash equivalents stood at $ 160,204 as compared to $ 904,095 in the previous FY2017. The inflows were mainly contributed by the borrowings from Directors, proceeds from the issue of shares to non-controlling subsidiaries.

GFI got listed on the Australian Securities Exchange (ASX) in February 2016. However, In June 2018, the company launched a request for the suspension of its securities from trading on the ASX until the announcement of finalisation of acquisition of a business. The GFI stock last traded on Friday, June 1st, 2018 at a closing market price of AUD 0.255.

As the company continues to develop exploration projects, its latest strategy involves rising up to become a platform integrating financial, capital, industrial, Internet and Internet of Things (IoT) data while investing and developing in high return projects, cross-border e-commerce as well as global agricultural dairy trade.


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