Kalamazoo Resources has announced that the sale of its Snake Well Gold Project to Adaman Resources for $7m is now complete.
Image: Kalamazoo completes sale of Snake Well gold project to Adaman Resources. Photo courtesy of rawpixel on Unsplash.
“We would like to thank Adaman for completing the sale of the Snake Well Gold Project on time and with a minimum of fuss” Kalamazoo’s Chairman, Mr Luke Reinehr, said today.
Reinehr said Kalamazoo is now well placed to fund its exploration and drilling programs for the next two years at its Wattle Gully Gold Project and in the Pilbara. “The Company is also delighted to have kept an interest in the base metal rights at Snake Well and the opportunity to develop an on-going relationship with Adaman,” 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 Nathan Mitchell of Mitchell Services Limited and Mark Rowsthorn of the Rivet Group.Adaman in May 2018,purchased the Kirkalocka gold mine near Mt Magnet in the Mid-West.
As part of the transaction Kalamazoo can engage Mitchell Services Limited to provide up to $4.0million of drilling services at the Wattle Gully Gold Project on commercial arms’ length terms with the value of any drilling services deducted from the final payment instalment/s due under the $7.0 million sale.This enables Kalamazoo to further fast track its drilling program at Wattle Gully at its election.
All necessary governmental consents and approvals normal for a transaction of this type, including consent of the Minister under the Mining Act 1978 (WA) have now been received. With the sale of the Snake Well Gold Project now complete, Kalamazoo has paid to Atlas Iron, the previous owner of the Snake Well Gold Project,the sum of $625,000 in full satisfaction of an outstanding gold royalty across the project.
The Snake Well sale follows Kalamazoo’s acquisition in June 2018 of the entire Wattle Gully Gold Project and the surrounding Castlemaine Goldfield in Victoria.
Source: Company Press Release