KalNorth Gold Sells Kurnalpi Project in Western Australia
KalNorth Gold Mines Limited announces that it, together with its wholly owned subsidiary Shannon Resources Pty Ltd, has entered into a binding agreement for the sale of the Group’s Kurnalpi Project for a total consideration of AUD 18 million. The purchaser of the Kurnalpi Project is Northern Star (Carosue Dam) Pty Ltd, a wholly owned subsidiary of Northern Star Resources Limited. The Kurnalpi Project is located approximately 85km north-east of Kalgoorlie, Western Australia and comprises a number of tenements. Included in the Tenements the subject of sale is mining lease M28/70, which adjoins and is surrounded by the Group's mining leases M28/374, M28/76 and M28/92.
The Company has acquired M28/70 from Ms Petalyn Fisher under the terms of a purchase agreement for an amount of $4,602,500. The acquisition of M28/70 has settled and the purchase price, GST thereon and stamp duty has been funded by a secured loan of $5.4 million provided to the Group by NSCD. NSCD and Ms Fisher are not related parties of the Group.
The SPA is subject to a number of conditions