Doray Minerals (ASX:DRM) has reached agreement with Sandstorm Gold Limited to terminate the Metal Purchase Agreement (MPA) over Doray’s wholly-owned Deflector Gold Project in Western Australia.
Doray became the owner of Deflector through the recent acquisition of Mutiny Gold.
Sandstorm had previously loaned US$6 million to Mutiny, who had the option to repay the loan and plus interest, or to convert the loan to a MPA.
The MPA included selling 2.6% of gold production from Deflector to Sandstorm at USD$500/oz for the life of mine.
In return for Doray agreeing to repay the loan early, Sandstorm has agreed to a reduced payout figure of USD$7 million, compared with the current balance of US$7.8 million.
Doray said that Westpac (ASX:WBS) has agreed in principle to fund the repayment to Sandstorm by increasing the current project finance facility over Andy Well.
- High-grade/low-cost project
- Pre production capexA$$88.2M
- Ann. production 60koz Au
- LOM C1 A$654/oz
- LOM AISC A$787/oz
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