AI assistant
IGO LIMITED Capital/Financing Update 2003
65111_rns_2003-07-22_dd7909e2-8323-43c5-bba1-7914cdb65126.pdf
Capital/Financing Update
Open in viewerOpens in your device viewer
23 July 2003
Australian Stock Exchange Limited Company Announcements Level 10, 20 Bond Street SYDNEY NSW 2000
NO. OF PAGES : $(2)$
KAMBALDA NICKEL ROYALTY AGREEMENT
The directors of Independence Gold NL are pleased to announce that terms have been agreed with Gold Fields Ltd acting on behalf of St Ives Gold Mining Co. Pty Ltd ("Gold Fields") to explore for and mine nickel at depth on a contiguous tenement south along strike from the Long Nickel Mine. Gold Fields has also agreed to include other contiguous tenements where nickel sulphide extensions occur under identical royalty terms.
This tenure is interpreted to contain the southern strike continuation of the Long and Victor nickel lava channels (Figure 1). The high-grade Victor South ore position is open to the south and the company has commenced drilling the Long South target.
Figure 1: Long Complex longitudinal projection showing interpreted lava channels, known deposits and Gold Fields' royalty area
The agreement provides that a royalty will be payable in return for the right to mine nickel on tenement ML15/161, which is directly adjacent to the Company's tenements being mined at Long.
PO Box 893, South Perth, Western Australia, 6951 Phone: (08) 9367 2755 Facsimile: (08) 9367 3288 Email: [email protected] Website: www.independencegold.com.au
Gold Fields will retain ownership of the tenement and all rights to gold both at surface and underground.
The royalty payable to Gold Fields is on a sliding scale depending on the Australian Dollar price receivable on nickel produced from the related area, which ranges from 0% where the AUD per pound is less than \$5.00 to 5% where the AUD per pound is \$8.30 or greater.
Figure 2 shows the royalty related area.
Figure 2: Long Complex plan projection showing interpreted lava channels, known deposits and Gold Fields' royalty area
The directors are delighted that this arrangement, in conjunction with the company's aggressive exploration program on the existing 100% owned project area, may contribute to the possible further extension of the Long Nickel Mine life beyond the current five years.
Finalisation of the agreement is anticipated during the current quarter.
Nund
CHRISTOPHER BONWICK Managing Director