Ausmex Mining Group has offloaded the Gilded Rose gold project in Queensland for $4 million after facing difficulties selling the asset.
Project ownership has changed hands to Hong Kong-registered company Jin Resources following multiple settlement delays, which were blamed on ongoing issues in the country.
The Gilded Rose project was also previously an acquisition target for ASX-listed PepinNini Lithium before the agreement fell through.
“Subsequent to completion of PepinNini’s due diligence enquiries, the parties have been unable to reach agreement to proceed further with the sale of the Gilded Rose project in accordance with the term sheet dated 14th April 2020 and therefore the term sheet was terminated by mutual consent,” PepinNini stated in an ASX announcement last week.
Gold production at Gilded Rose is now anticipated to recommence in the coming months, backed by a team at Jin Resources that includes former heads at BHP and Rio Tinto.
Ausmex intends to use the sale proceeds to progress its Golden Mile mining lease application and development along with production at the Mt Freda Complex, both of which are located in Queensland.
Ausmex aims to bring the Mt Freda Complex into production this year, and to process the ore at the Round Oak Minerals-operated Great Australia Mine carbon-in-pulp (CIP) plant in Cloncurry.
The remaining funds will go toward Ausmex’s programs at the Burra copper-gold project in South Australia.
Ausmex has received $2.5 million in cash, and will receive the next $500,000 in May next year.
Another $1 million will be due within two years of the transaction completion or the Gilded Rose project’s 10,000-ounce production, whichever occurs first.