Gold and base metals explorer PNX Metals (ASX:PNX) reports unlisted company Sovereign Metallurgical has elected to finalise the purchase of the Moline Project in the Northern Territory.
As part of the agreement, Sovereign will pay PNX the agreed consideration of $1.5 million, and will also refund the existing tenement bond of about $300,000 on title transfer.
PNX says the $1.5 million consideration will be paid in 4 instalments starting on 15 April 2023, occurring monthly with completion and the final payment due on or before 28 August 2023.
PNX will retain a 1% net smelter royalty (NSR) over gold and silver, and a 2% NSR over any other minerals produced at the project. The company will also have a right of refusal to toll treat any gold and silver mineralisation from Moline at reasonable commercial rates through the proposed Fountain Head process plant.
Commenting on the sale, PNX Metals Managing Director, James Fox says: “The divestment of a non-core asset realises immediate value for PNX and allows the company to focus on the development and further exploration of its 100% owned Fountain Head gold, and Hayes Creek gold, silver, and zinc projects located in the Pine Creek region of the Northern Territory.
“Drilling is expected to start in May, after the end of the NT wet season and when ground conditions improve”
Personnel are on site to recommence regional exploration with a significant program of exploration and development activities on our core projects. Drilling is expected to start in May, after the end of the NT wet season and when ground conditions improve.”
The Moline Project is located 65km east of PNX’s Fountain Head and Hayes Creek development, and comprises 3 mining licences and an exploration licence.
PNX Metals is a gold and base metals explorer focused on its Hayes Creek and Fountain Head Zinc, Gold, and Silver projects in the Northern Territory. The projects are located 170km from Darwin by road and comprises 25 wholly owned mineral leases. The life of mine production estimates with metals recovered to doré and concentrates is 250,500 ounces of gold, 11.4 million ounces of silver, and 116,300 tonnes of zinc.
Images: PNX Metals Ltd
