Empire Resources Announces The Sale Of Penny’s Find Mining Lease For $600,000 And Royalty Stream

Empire Resources Announces The Sale Of Penny’s Find Mining Lease For $600,000 And Royalty Stream

Empire Resources Limited (ASX: ERL) announced an execution of binding term sheet for sale of 100% Penny’s Find gold mine 45 km northeast of Kalgoorlie in cash for $600,000 and royalty stream to Western Australia minerals project developer, Orminex Limited (‘Orminex’, ASX: ONX) via the Orminex subsidiary Orminex Penny’s Find Pty Ltd. Orminex will pay Empire cash payment of $600,000 in three equal milestones, and the deal is subject to full form legal documentation being signed within 30 days and to any necessary ASX (obtaining shareholder approval if ASX determines listing rule 11.2 is applicable), ASIC, Shareholder or other Regulatory requirements.

Empire will also receive royalty payments consisting of a 5% net smelter royalty (NSR) on the first 50,000 ounces of gold recovered. After the first 50,000 ounces of gold, the NSR reverts to a 2.5% of gold recovered for the life of mine. Orminex will pay all State royalties. Prepayments of royalty apply if mining has not commenced within an agreed time frame or ceases for an extended period of time.

However, ERL retains full ownership and all rights to 32 square km of highly gold prospective exploration tenements within the broader Penny’s Find project but outside of the mining area now sold to Orminex.

The income from the transaction will enable Empire to explore on its very prospective Penny’s North Tenements building on our existing knowledge of that area’s prospectivity and gold mining potential. It will also enable the Company to explore at the Yuinmery project to expand the already significant copper-gold resources previously defined by the Company at that project.

After this acquisition, Orminex will have access to the mineral resource of 248,000 tonnes at 7.04g/t Au for 56,000 oz and mineralization remains open at depth. Indicated mineral resources comprised of 147,000 tonnes at 8.06 Au g/ta for 38,000 oz, whereas Inferred Mineral Resource comprised of 101,000 tonnes at 5.57 Au g/t for 18,000 oz. The site provides good opportunity as significant on-site infrastructure and supports potential short lead time to gold production.

Penny’s Find mine is hosted by quartz veins with the high-grade gold mineralization at the contact between basalt and sediments. Metallurgical test work has corroborated the historical data where total gold recovery exceeded 90% with fresh mineralization to be free milling with a high gravity recoverable gold component. The resource estimation was calculated by DataGeo Geological Consultants (‘DataGeo’), and incorporated results from all appropriate drilling with the most recent being diamond drilling reported to the ASX by Empire on 6 November 2017.

We would now have a look at how Empire Resource Limited’s stock is performing today and how it has performed in the past few months. Today (i.e. March 04, 2019, AEST 01:18 PM), at the time of writing, the stock of Empire Resource is trading in red as the stock price is witnessing a downfall of A$0.001 per share or 10.0% and is presently trading at A$0.009 per share. The market capitalization of Ansell Limited stood at $6.14 million. It reported a loss per share of 0.001 AUD at ASX. Its 52 weeks high has been noted at $0.018 and 52 weeks low at $0.008. Its absolute return for 3 months, 1 year and 5 years are 25%, -41.18%, and 100% respectively.


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