Kentor Gold (ASX: KGL) is in a position to monetise a non-core asset, and has signed a binding term sheet with Robust Resources (ASX: ROL) for the sale of the advanced Andash gold-copper project in the Kyrgyz Republic.
This will then allow Kentor to focus on the exploration and development of the potentially large and financially robust Jervois copper-silver-gold project in the Northern Territory, which is subject to a Feasibility Study.
Consideration for the deal pending shareholder approval and due diligence, will be a A$1 million deposit payable immediately, and A$14 million payable on completion - which is targeted to be finalised by the end of June.
The transaction is also subject to approvals required under the ASX Listing Rules and the Corporations Act, and Robust raising sufficient funds to complete the transaction.
Having secured funding at the corporate level, Kentor will now focus on the re-instatement of trading of its shares, with a timetable to be released in the coming days.
Simon Milroy, the managing director of Kentor, spoke to Proactive Investors today and said that the company's focus will now be on its Australian based assets - which includes the Jervois copper-silver-gold project in the Northern Territory.
"Jervois is on granted mine licenses with no local communities, and therefore there is the potential for an easy path to progress towards development."
The Jervois copper-silver-gold project
Kentor wholly-owns the Jervois copper-silver-gold project, where metallurgical test work for the Bankable Feasibility Study is advancing.
Resources at the project include:
- Copper-silver: Inferred Resource of 13.5 million tonnes at 1.3% copper and 25.8g/t silver for a total of 170,416 tonnes copper and 11.6 million ounces silver at a 0.5% copper cutoff.
- Gold: Initial gold Inferred Resource of 12.5 million tonnes at 0.17g/t gold for 69,000 ounces
gold at a 0.5% copper cutoff.
- Lead-zinc: Resource includes 1 million tonnes at 2.6% lead and 2.2% zinc for 26,000 tonnes lead and 22,000 tonnes zinc contained within the copper mineralisation at the Green Parrot and Bellbird North deposits.
Kentor made some significant achievements at Jervois during the March 2013 quarter, including a successful drilling where all six reverse circulation holes on the periphery of the NOA7/8 ore body intersected significant mineralisation.
The outcome was that the results extended the high grade mineralisation which remains open to the south and the north along strike and down dip.
Additionally, a new shallow mineralised zone was identified to the north beneath the NOA8 pit, which highlight the potential to further increase the high grade resources.
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