Latitude 66 is set to sell its Sylvania gold project in the Pilbara to Capricorn Metals in a $3 million deal.
Sylvania is located approximately 60km west of the Karlawinda gold mine, Capricorn’s over 100,000 ounce-per-year operation.
Latitude 66 managing director Grant Coyle said the proximity of the two projects made the acquisition an obvious choice for Capricorn.
“With its nearby Karlawinda operation, Capricorn Metals is a logical buyer for the Sylvania project and we are pleased to be realising latent value for shareholders from this non-core asset,” Coyle said.
“While our strategy remains firmly committed to our Finnish projects, we look forward to finalising this transaction and pursuing opportunities to realise further value from our Australian assets.”
The consideration for the sale comprises $1.5 million payable upon transaction completion, $750,000 payable upon the definition of a JORC compliant mineral resource estimate of greater than 200,000 ounces of gold, and $750,000 payable on the date Capricorn decides to commence a stand-alone commercial mining operation.
Capricorn will also grant Latitude 66 a one per cent net smelter (NSR) return royalty of the sale of all precious minerals and a 1.5 per cent NSR royalty in respect of the sale of non-precious minerals extracted from the project’s tenements.
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