The sale includes royalties over gold tenements at Kookynie, West Kundana, Millrose and a free-carried interest in the New Bore and Kelly Well projects, which is convertible to a royalty.
Consideration for the sale, which was first announced in July 2019, includes $250,000 in cash and $250,000 in shares, which are expected to be quoted for trading on the TSX Venture Exchange on 25 May 25, 2020.
Funds for WA work
Funds received will be used by Jindalee to explore its Western Australian gold and nickel projects
Jindalee’s focus over the past two years has been the 100%-owned McDermitt project in the US, which has seen the company progress development from concept to maiden resource in 18 months.
Metallurgical test-work on samples from McDermitt is continuing in both the US and Australia, however, COVID-19 related travel restrictions will likely crimp field activities for the short to medium term.
Programs at Widgiemooltha
The company also holds a large portfolio of 100%-owned projects in the Goldfields of Western Australia, including the Widgiemooltha project, 60 kilometres south of Kalgoorlie, which covers approximately 1,000 square kilometres and is prospective for gold and nickel.
Currently, resource sector workers are exempt from intrastate travel restrictions to the Goldfields and the Widgiemooltha district, and the company is preparing short-term, programs to test several areas at Widgiemooltha assisted by the sale funds.
The areas include ground south along strike of Anglo Australian’s (ASX:AAR) Mandilla gold discovery where wide intercepts up to 93 metres at 3.1 g/t gold and 163 metres at 1.7 g/t have recently been reported.
Torque Metals earn-in
Jindalee reached an agreement with Torque Metals Ltd l.ast month whereby Torque can earn 80% interest in three exploration licences on the eastern edge of the Widgiemooltha project.
Torque, an unlisted company led by long-time gold geologist Ian Finch, is acquiring the Paris gold mining centre.
Gold was first discovered at Paris in 1919 and around 42,000 ounces have been recovered from the area to date, most recently in 2016-17 when about 18,000 ounces were produced from around 187,000 tonnes of open pit material processed at the Greenfields, Higginsville and Lakewood plants.