Victory West receives fee for Sulawesi molybdenum project
Friday, February 25 2011 - 03:51 AM WIB
The company is now finalising the required executed administrative letters upon which, CGGC will make the second and final A$500,000 payment.
On 27 November 2010, Victory West and CGGC entered into a memorandum of agreement detailing the terms of the acquisition by CGGC of a majority interest in the Malala Molybdenum Project.
Under the terms of the agreement, CGGC will acquire a 65 per cent interest in the Project in consideration for sole funding 100 per cent of all expenditure to large scale Production. VWM will retain a "free carried" interest of 27.5 per cent in the Project through its related parties. CGGC will also pay a US$1 million commitment fee.
Under the terms of the MOA, a number of key exploration, development and production milestones are required to be met by CGGC;
- Exploration - A minimum of 10,000 metres drilling to be reviewed by a geological consulting group of international standard. Definition of a suitable 43-101 / JORC resource that is capable of commercial production.
- Development - Development and construction of the Project for commercial production including mine development, processing plant and associated infrastructure.
- Early Production - Delivery of early production opportunities from high grade mineralization identified during exploration within 24 months.
- Large Scale Production - Subject to a total resource of no less than 150 million tons at 840ppm Mo CGGC will commence large scale production (open pit) by 2016.
CGGC is a diversified international industrial group engaged in a broad range of operational and investment activities across industries including mining, engineering, construction and real estate. (alex)