Australian Securities Exchange Announcement
6 August 2015
ASX Market Announcements
Australian Securities Exchange
20 Bridge Street
SYDNEY NSW 2000
SPARGOVILLE PROJECT FARM-IN AGREEMENT
• Tychean secures agreement with Maximus Resources as a farm-in joint venturer to fund exploration and development of the Spargoville Gold Project in a deal that's worth
$1.2 million.
• Tychean to receive $200,000 in cash followed by a further equivalent value in Maximus shares upon transfer of 25% interest in the Project.
• Maximus can earn up to 90% equity by expending a further $800,000 in exploration activities within three years.
• Tychean free carried until a decision to mine is reached.
• Provides Tychean with enhanced exposure to project upside by acquiring a circa 10%
equity holding in Maximus.
Tychean Resources Limited (ASX: TYK) is pleased to announce that it has agreed the terms for Maximus Resources (ASX: MXR) to farm-in to the Spargoville Gold Project in the Eastern Goldfields of Western Australia. The agreement secures important funding to further progress the development of the Project with Tychean being free carried until a decision to mine at which time it can contribute to costs on a pro rata basis or elect to convert to a 1.5% Net Smelter Royalty.
Farm-in terms
• Maximus to acquire a 25% interest in the Project tenements for a cash payment of
$200,000 and fully paid ordinary shares in the capital of Maximus to the value of $200,000 upon Maximus being registered as the holder of that equity interest in the tenements.
Tychean Resources Limited ACN 119 031 864 | Level 3, 100 Pirie Street, Adelaide SA 5000 |
Phone 61 8 7324 3195| Fax 61 8 8312 5576| Email [email protected] | web www.tycheanresources.com
• Tychean grants Maximus the right to earn a further 26% interest (total 51% interest) in the Project tenements by expenditure of $200,000 within 2 years of commencement of the farm-in agreement.
• A further 39% interest (total 90% interest) may be earned by Maximus by expenditure of a further $600,000 within 3 years of commencement of the farm-in agreement.
• Tychean will be free carried until a decision to mine at which time it may elect to contribute its interest or convert to a 1.5% NSR Royalty.
Managing Director Joe Houldsworth commented, "Tychean welcomes the opportunity to work with Maximus to move forward on this exciting project".
Joe Houldsworth
Managing Director