Avocet Mining has signed a joint venture earn-in agreement with Dynasty Gold Corporation of Canada to earn up to a 36% of Dynasty"s interests in Xinjiang Province in China
Avocet is a Central and South East Asian gold production and exploration company.
Avocet first invested in Dynasty in November 2005 and has held an undiluted interest of 26% in Dynasty with agreements in place to increase this interest to 31%.
Toronto Stock Exchange listed Dynasty controls a large area of prospective ground in Western China . This includes 1000sqkm at Hatu in Xinjiang Province , 100sqkm at Red Valley in Qinghai Province and 2000sqkm at Wild Horse in Gansu Province .
In February this year, Dynasty announced a 9% undiluted equity investment by AngloGold Ashanti . The funds invested will be used to fund the Red Valley and Wild Horse projects.
The terms of the joint venture agreement allow Avocet to invest US$1.8 million, with a minimum commitment of US$800,000, in the Hatu joint venture by March 321 next year in return for a maximum 36% interest in Dynasty's interest in the Hatu joint venture.
The funds will be used to bring the existing resource up to a measured and indicated category, undertake step out drilling to expand the resources and finalise metallurgical testwork, with a view to moving the project to feasibility.
Following the minimum commitment Avocet will also have the right to negotiate further interests in the property until September 30, 2007 .
The agreement also gives Avocet the right of first refusal on any new projects that Dynasty negotiates in Xinjiang Province .
The Hatu deposit has an inferred resource of 16,855,400 tonnes at 1.68 grams per tonne gold (912,600 ounces gold) using a cut-off grade of 1.0 gram per tonne as independently verified by SRK Consulting in June 2005 to NI-43 101 standards, the Canadian standard for listed companies.
Dynasty can earn up to 80% of the Hatu tenement by spending US$12 million with no conditions on the timeframe in which this expenditure must be made. So far Dynasty has spent over US$3 million towards this commitment.
Avocet is a mining company listed on the AIM market of the London Stock Exchange. The company's principal activities are gold mining and exploration in Malaysia (as 100% owner of the Penjom mine, the country's largest gold producer), Tajikistan (as 75% owner and operator of ZGC, Tajikistan 's principal gold mine), and Indonesia (as 80% owner of the North Lanut gold mine in North Sulawesi ). The company has a number of advanced mining and exploration projects in Asia .
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