West Wits to secure A$9 million for Derewo Project
Thursday, May 24 2012 - 04:27 AM WIB
ASX-listed firm West Wits Mining Limited recently stated it has received A$2 million as an upfront initial payment from Mintails Limited as part of the consideration for the sale of its four South African exploration leases for A$9 million.
The next installment payment of $1 million was slated to be received in 6 months (November 22, 2012 ) and have an unconditional guarantee attached. The two following installment payments ( February 22, 2013 & May 22, 2013 ) will also be made on an unconditional basis with satisfactory security to be provided on, or before the previous installment payment. The final $1 million installment payment is subject to approval of transfer of the leases with the $3 million balance to be paid on a progressive basis at R110 per tonne of ore processed from the leases.
"This transaction will secure West Wits? working capital position and allows it to continue to develop the Company?s Derewo River Gold Project in Papua, Indonesia," the company said in a statement.
Editing by Er Audy Zandri