Empire Resources has renegotiated a sale agreement for the Penny’s Find Gold Project with the sale price for a 100% interest in the project increasing to USD 3 million from USD 2 million.

The agreement with unlisted company Brimstone Resources was originally formed in September 2010. Penny’s Find has a JORC Resource of 314,000 tonnes averaging 5.2 grams per tonne gold down to a vertical depth of 150 meters.

Under the new terms of the agreement, the sale consideration now comprises either:
1. A total cash payment of USD 3 million by June 2013 for a 100% interest.
2. A royalty payable on any gold produced in excess of 52,500.
3. Expenditure of USD 750,000 by September 30th 2012 to take up 51% stake in the project.
4. A commitment to drill 4 reverse circulation holes before the end of March 2012.
5. An option to increase this stake to 75% by the expenditure of a further USD 750,000 by June 2013.

Under the second option, Empire’s costs would be carried and repayable from production. The sale of Penny’s Find will allow Empire to focus on its core Yuinmery copper gold project in Western Australia.

Mr David Sargeant of Empire said that “These changes to the agreement are positive for both parties. Brimstone will have additional time to devote to the project while Empire will benefit from either an extra USD 1 million for a total of USD 3 million in the event of a full sale or an additional 5% interest to 25% interest in the event of a partial sale. Exploration activities will now pick up with Brimstone drilling four new RC holes below the proposed pit in the current quarter in an area where we anticipate high gold grades.”

(Sourced from www.proactiveinvestors.com.au)