On April 11 Ausmex gave notice to PNX that it had completed stage-2 of the farm-in and moved to a 90% position, however, PNX did not opt to form the 90/10 joint venture.
Given this advice, AMG moves immediately to a 100% interest in the tenements and as a result, PNX retains a 2% net smelter return royalty over any minerals produced from the tenements.
Those tenements that are subject of this announcement comprise a total of 1,190 square kilometres and include Burra Central, Mongolata, Bagot Well, Washpool, Burra West, Burra North, Spalding and Princess Royal.
AMG will now proceed with the necessary notices to the South Australian Department of Energy and Mining to reflect the changes in ownership.
Tenement map showing the tenements subject of the farm-in agreement between AMG and PNX
Ausmex director and chief operating officer Geoff Kidd said: “We retain our belief in the prospectivity of our suite of tenements in the Burra Region for gold, copper and base metals.
“Most of the tenements that are the subject of this announcement are at the centre and cover the historic gold and copper operations.
“Ausmex has maintained a close, productive and cordial working relationship with PNX at all levels for the past three years and we thank all PNX management and staff for their professionalism in progressing all aspects of this work.
“We believe that it will benefit all AMG shareholders to have 100% control of this ground as we move forward with our work after the COVID-19 restrictions are suitably relaxed.”