Kentor Gold Close To Finalising $13.5m Sale Of Andash, To Resume Trading
Seeking Alpha Analyst Since 2009
Kentor Gold (ASX: KGL) has provided an update to the market with the company set to resume trading on Thursday 11th July 2013.
Earlier in the year Kentor entered into an agreement to sell the Andash gold-copper project to Robust Resources (ASX: ROL), with shareholders to vote on the sale at a shareholder meeting scheduled for the 8th August 2013.
If approved by shareholders, Kentor will receive $13.5 million at settlement, scheduled for 2 days after the meeting of shareholders.
It is Kentor's intention to use these funds to:
- Undertake exploration activities and continue the feasibility study on the Company's Jervois Project; and
- Contribute to the creditors of KMWA under the DOCA if accepted by creditors.
Kentor has already received a deposit of $1.5 million from Robust Resources.
Jervois copper project update
Kentor is preparing to kick-off an extensive 20,000 metre drilling program at the wholly-owned Jervois copper project in the Northern Territory next month, with the drilling designed to increase the size of the resource.
Jervois currently hosts an 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 of silver, at a 0.5% copper cutoff. There is also some gold, lead and zinc.
A pre-feasibility study is scheduled for completion in January 2014 followed by a Definitive Feasibility Study.
Kentor Minerals (WA) Pty Ltd (KMWA) has been under administration since 28 March 2013 after the company was unsuccessful in obtaining financing for the Murchison operations.
Kentor has proposed a Deed of Company Arrangement (DOCA) to the creditors of the KMWA, the details of which will be considered at the Creditors meeting on 10 July 2013.
The outcome of the meeting will be advised to shareholders before the resumption of trade on 11 July 2013.
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