Ausmex Mining Group Ltd (ASX:AMG) has executed a binding term sheet for the proposed sale of its Gilded Rose Project near Cloncurry, Queensland for $4 million.
A $100,000 non-refundable option fee to conduct due diligence enquiries has been received.
The next $2.4 million payment, which is due by 15 November 2019, is subject to the completion of due diligence being completed by the purchaser.
An additional $1.5 million will be paid after the first 10,000 ounces of gold is produced from the project.
The project is being acquired by Jin Resources (HK) Limited, who aims to fast-track gold production at the project.
Ausmex shares have been in a trading halt since last Wednesday pending the release of this proposed sale information.
Sale proceeds to fund exploration and development
Funds will be used to continue to define a JORC resource within the Mt Freda Complex and progress the Golden Mile mining lease application in Cloncurry, Queensland.
Mt Freda is a historical open-pit gold mine area that operated from 1986 to 1989.
Notably, mining at Mt Freda stopped when gold fell to US$260 per ounce, a fraction of today’s price.
Recently Ausmex defined an exploration target of 19-30 million tonnes grading 1.7-3.4 g/t gold for its Cloncurry tenements.
Funds will also be used towards a maiden drilling program at the Burra Copper and Gold project in South Australia.