Accent Resources has signed binding agreements to sell its Norseman Gold Project to Boomerang Mining Capital for up to A$4m ($2.77m) in cash.
The Norseman Gold Project is situated approximately 5km south of the Norseman town site within a highly mineralised section of the southern Norseman-Wiluna greenstone belt in Western Australia
Under the terms, Accent will receive an initial payment of A$3m in cash on settlement. An additional A$1m will be paid within ten business days after a mining lease is granted and Boomerang secures the necessary approvals to start commercial gold mining at the site. The agreement allows Accent to retain full ownership of the project’s iron ore and platinum group element (PGE) mineral rights under a mineral sharing agreement.
Additionally, the company will obtain a gross revenue royalty of 4% on all minerals produced from the project, except for iron ore and PGEs. Boomerang has an option, set out in the Royalty Deed, to acquire half of this royalty interest for A$4m in cash, which would reduce the royalty to 2%. Mineral Mining Services has guaranteed Boomerang’s obligations related to this transaction.