Empire Resources has acquired full ownership of the Penny’s Find gold mine to clear the debts that were owed to it by former joint venture (JV) partner Brimstone Resources.
The acquisition includes all assets and exploration tenements associated with Penny’s Find.
Empire’s 40 per cent JV partner Brimstone has incurred $1 million worth of debt as a result of Empire funding the unlisted company’s share of mining expenditure.
Empire managing director David Sargeant said a final investment decision on the expansion of Penny’s Find into a larger, longer-term underground gold mine had to be put on hold, pending to the resolution of Brimstone’s ownership in the mine.
Under the settlement agreement between the two companies, Empire will own all of Penny’s Find project including its mine infrastructure, resource inventory and other facilities.
Empire will also be entitled to all proceeds arising from a dispute with Eastern Goldfields Mining Services.
In late June this year, the WA-based gold producer appointed a receiver to secure assets in managing debts that were owed to Empire under the JV.
Penny’s Find is 50km northeast of Kalgoorlie in Western Australia.