CBH Resources will sell its Hera and Nymagee mineral tenements in western NSW for $12 million, the company said in a statement.
YTC Resources has agreed to purchase the tenements and hopes to rapidly develop a gold and base metal project at Hera, with ore from Hera to be trucked to CBH’s Endeavor Mine for processing.
YTC, which is 25.75% owned by Yunnan Tin Group of China, also said it would fund the purchase and construction of a gravity separation circuit at Endeavor designed for the recovery of coarse gold and silver.
Ore from Hera would be processed at Endeavor under a tolling arrangement to be negotiated with CBH. Under the sale agreement with YTC, CBH is to be paid a non refundable deposit of $1 million, with the balance of the purchase price to be paid within 90 days, subject to the receipt of various approvals including Australia’s Foreign Investment Review Board.