West Australian gold producer and explorer, Empire Resources has sold 100 per cent of its Penny’s Find gold mine in a cash and royalty transaction, netting a tiered AU$600,000 cash payment to Empire by Orminex.
Empire will also receive royalty payments consisting of a 5 per cent net smelter royalty (NSR) on the first 50,000 ounces of gold recovered, with the NSR then reverting to a 2.5 per cent of gold recovered for the life of mine.
Empire will retain full ownership and all rights to 32 km2 of highly gold prospective exploration tenements within the broader Penny’s Find project but outside of the mining area now sold to Orminex
Empire’s Managing Director, Mr David Sargeant sees the sale of the Penny’s Find mining leases as a timely disposal.
“On completion, the sale provides Empire with a cash injection and the ability to participate in the royalty stream resulting from an earlier development of the project in a strong gold price regime than would otherwise have been possible with Empire’s current limited cash reserves,” commented Mr Sargeant.
“The income from the transaction will enable Empire to explore on its very prospective Penny’s North Tenements, building on our existing knowledge of that area’s prospectivity and gold mining potential. It will also enable the Company to explore at the Yuinmery project to expand the already significant copper-gold resources previously defined by the Company at that project.”
Empire established the open-pit and underground gold resources at Penny’s Find, electing to mine the near-surface inventory to completion, before putting the project on hold to evaluate options for its development or sale.