ASX Announcement
3 August 2016
Landmark Acquisition of Gold Processing Facility
Summary
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Acquisition of Burbanks Gold Processing Facility near Coolgardie, WA
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Provides an ability to easily monetise exploration success at Spargoville
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Near-term toll treatment revenue options identified
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$1.6 million placement to fund the acquisition and provide working capital
Maximus Resources Limited, (ASX: MXR) is pleased to announce the landmark signing of a binding Share Sale Agreement with Ramelius Resource Limited (ASX: RMS) for the purchase of the Burbanks Processing Facility located 8 kilometres south of Coolgardie. The acquisition complements Maximus' existing exploration portfolio, providing the Company with the ability to easily monetise future exploration success at its Spargoville gold project. Additionally, Maximus has identified numerous parties potentially requiring gold treatment options and will be able to provide Toll milling services later in 2016 following refurbishment and recommissioning of the facility. Consequently, the acquisition provides Maximus with a near-term revenue opportunity and a platform for further growth.
Burbanks Processing Facility
The Burbanks Processing facility is ideally located close to the regional centre of Coolgardie and approximately 60 kilometres from Maximus' current highly prospective Spargoville exploration portfolio and within trucking distance of numerous gold development projects. The facility includes two stage crushing, ball milling and a carbon in pulp circuit of nominal 180,000tpa capacity. Maximus has acquired the facility for a total of $2.5 million which includes staged payments over a 24 month period. The facility previously treated ore from Ramelius' Wattle Dam gold mine located within Maximus' current Spargoville portfolio.
Maximus believes the mill will be available to treat ore from 3rd party producers whilst the company progresses its own projects containing unclassified ore within its mineral inventory and converts these to resource category and obtains regulatory approval for mining.
The facility has been on care & maintenance since late 2014 and will require refurbishment prior to recommissioning over the coming months. It is anticipated that refurbishment of the facility will be completed within 10-12 weeks from commencement.
Picture 1: Burbanks Processing Facility
Picture 2: Location of Burbanks Processing facility in relation to Maximus' Spargoville tenements
Placement to Institutional Investors
Maximus is pleased to advise that it has received firm commitments of $1.6 million for the placement of 533,333,333 fully paid ordinary shares ("Placement") at an issue price of $0.003 per share with an attaching option having an exercise price of $0.006 and expiring 12 months from the date of issue. Terms of the Placement essentially replicate the pricing and structure of Maximus' recent entitlement issue to existing shareholders.
Funds raised through the Placement will directly fund the first tranche of the acquisition price, the costs of refurbishment/recommissioning and provide the Company with requisite working capital.
The Placement will be subject to approval of existing shareholders at a General Meeting to be held in mid-September 2016. Taylor Collison acted as Lead Manager for the Placement.
For further information contact, please contact:
Kevin Malaxos on 08 7324 3172 Duncan Gordon, Adelaide Equity Partners [email protected] on 08 8232 8800 or 0404 006 444
[email protected]
Further information relating to Maximus Resources Limited and its diversified exploration projects can be found on Maximus' website: www.maximusresources.com