Kalamazoo and Adaman Resources have executed the Mining Property Sale and Purchase Agreement for the AU$7M sale of the Snake Well Gold Project in Western Australia.
|Location of the Snake Well Project. Image Source ©Kalamazoo Resources|
As part of the transaction, Kalamazoo can elect to engage Adaman to provide up to AU$4M of drilling services, which if exercised, further accelerates Kalamazoo’s drilling program at the Wattle Gully Gold Project.
The Snake Well sale follows Kalamazoo’s acquisition in June this year of the entire Wattle Gully Gold Project and the surrounding Castlemaine Goldfield in Victoria.
“Signing the Mining Property Sale and Purchase Agreement on time is an excellent result,” said Kalamazoo’s Chairman, Mr Luke Reinehr.
In the last 12 months, Kalamazoo had acquired two major gold exploration projects with significant potential – the Wattle Gully Gold Project and the Pilbara Gold Project.
According to Mr Reinehr, the exploration and drilling programs for the two projects will be funded over the next two years by the proceeds received from the sale of Snake Well.
“The Company is also delighted to have kept an interest in the base metal rights at Snake Well and the opportunity to establish an on-going relationship with Adaman,” Mr Reinehr said.
Adaman, a privately-owned mining solutions provider with drilling, logistics and corporate capabilities, is co-owned by two independent mining services companies headed by Mark Rowsthorn of the Rivet Group and Nathan Mitchell of The Mitchell Group. In May of this year Adaman purchased the Kirkalocka gold mine near Mt Magnet in the Mid-West.
The AU$7M sale proceeds will be paid in cash progressively over the next 24 months and is secured across the project. Once consent is received, Kalamazoo will pay to Atlas Iron Limited, the previous owner of the Snake Well Gold Project, the sum of AU$625,000 in full satisfaction of an outstanding gold royalty across the project.