The $5.8 million sale, which was adjusted for any major component defects, has a minimum threshold of $100,000 during a short due diligence period.
A Gold-in-Circuit (GIC) calculation will be completed at the end of the due diligence period, with the value of the GIC to be paid to Maximus.
The company’s recent quarterly report update stated that the value of this was about $1.8 million with gold continuing to be removed from the circuit.
Toll milling capacity secured for two years
Maximus has also secured a minimum of two years milling capacity at Burbanks of 5,000 tonnes per month from January 2020 with the option to extend the term by agreement.
Securing this milling capacity ensures the company can continue the development of its Spargoville gold projects near Kalgoorlie and accelerate the approvals process as well as continue to pursue other projects for acquisition.
The company looks forward to updating shareholders as this transaction progresses and providing exploration updates as it begins its exploration program.