Classic Minerals (ASX:CLZ) has signed a deal to sell its Kat Gap tenements to privately held Bain Global Resources for $7 million.
The Kat Gap Gold Project, located in Western Australia, has been the focus of the majority of the company’s recent exploration efforts. The company says the project has delivered strong grades and near-surface mineralisation, as well as evidence of new zones outside the original drilling perimeters.
Under the agreement, Bain will acquire mining lease M74/249 — pending ministerial consent and foreign investment review board approval — as well as exploration license E74/467, miscellaneous licenses L74/57 and L74/59, and any related mining information and camp equipment.
In 2020, Classic Minerals purchased an onsite processing plant at Kat Gap, which it will retain and upgrade in order to expedite processing capabilities.
Classic says the full amount of the purchase price is payable within five days of all conditions being met, including shareholder approval.
The proceeds will be used to retire debt, as well as fund exploration work at the Lady Ada and Lady Magdalene project areas, including Feasibility Studies. The transaction is expected to close by the end of February 2025.
Bain, in cooperation with its sister company mining contractor Mega Resources, proposes to further develop the Kat Gap Gold Project and bring it into full production.
Bain Managing Director Kiran Visireddy says the company is excited with this opportunity to develop the project and advance the presence of Bain and Mega in Australia.
“We have already invested in the Western Queen Gold Project with Rumble Resources (ASX:RTR) and look forward to expanding our footprint in Western Australia,” Visireddy says.
Classic Minerals is an Australia-based mineral explorer focused on its pipeline of projects and continues to examine new opportunities.
Write to Aaliyah Rogan at Mining.com.au
Images: Classic Minerals
