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Microsoft Word - 20151012 Renegotiation of Henty Royalty Agreements
12 October 2015 ASX Release
Unity Mining Limited ABN 61 005 674 073
Corporate Details:
ASX Code: UML
Issued capital:
1140M ord. shares
9.58M unlisted Perf. Rights
Substantial Shareholders: Diversified Minerals Pty Ltd 159.1M (13.69%)
Directors:
Non-Executive Chairman: Clive Jones
Acting Managing Director: Frank Terranova
Non-Executive Directors: Ronnie Beevor
Gary Davison
Contact Details:
Unity Mining Limited Level 10
350 Collins Street Melbourne Victoria 3000 Australia
Tel: +61 (0)3 8622 2300
Fax: +61 (0)3 8622 2399
Email: [email protected]
Website: www.unitymining.com.au
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Re-negotiation of Henty Royalty Agreements
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Unity Mining Limited (ASX : UML, 'Unity' or 'Company') is pleased to announce the re-negotiation and execution of revised Royalty Agreements with Franco Nevada Corporation ('Franco') in respect of Unity's Tasmanian based gold tenements.
Historically, the royalty in the Northern section of the mine provided for a 10% Net Smelter Return ('NSR') to Franco, with the Southern section of the mine subject to a 1% NSR. This royalty regime has provided a large disincentive to undertake any material exploration activity in the Northern sections of the Henty Mine.
Since the establishment of the Unity and PYBAR Group joint venture at Henty, discussions have progressed with Franco to re-negotiate the existing royalty structure. As a result Unity is pleased to announce that Franco have agreed to reduce the NSR to a flat 1% royalty (from production and sale of gold and other precious metals, including from by-products derived from mining processing or refining) across the existing Henty Gold Mine Area. As part of this restructure Unity has also agreed to provide Franco with a 1% NSR over any gold and precious metals produced from Unity's other Tasmanian tenements that were not previously subject to any royalty arrangement with Franco.
Commenting today, Frank Terranova, Acting Managing Director said: 'The Unity team have concluded a transaction that can be described as a genuine win/win for all stakeholders. The exciting targets in the Northern section of the Henty Mine, particularly in the 'Collar Zone' region can now be appropriately prioritised'.
The new royalty arrangements take effect from 30 September 2015.
For further information contact :
Frank Terranova Kerry Parker
Acting Managing Director Chief Financial Officer [email protected] [email protected]
+61 3 8622 2300 +61 3 8622 2300
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ASX Release Unity Mining Limited Page 2
www.unitymining.com.au
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Unity Mining Limited
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PRODUCER |
CODE : UML.AX |
ISIN : AU000000BDG2 |
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Unity Mining is a gold development stage company based in Australia. Its main assets in production are HENTY, KANGAROO FLAT and BENDIGO in Australia. Unity Mining is listed in Australia and in Germany. Its market capitalisation is AU$ 37.7 millions as of today (US$ 27.2 millions, € 24.3 millions). Its stock quote reached its highest recent level on June 28, 2002 at AU$ 3.29, and its lowest recent point on January 02, 2015 at AU$ 0.01. Unity Mining has 1 143 079 936 shares outstanding. |