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ST BARBARA LIMITED Fund Information / Factsheet 2004
65749_rns_2004-09-19_3fef4112-e94d-4ce3-9d14-2dea4d0d5d6e.pdf
Fund Information / Factsheet
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ASX SHAREHOLDERS REPORT
Enquiries regarding this report or Company business may be directed to:
Colin G. Jackson Non-executive Chairman Telephone 0417 929 107
or
Brett Lambert
Acting Chief Executive Officer Telephone (08) 9476 5599 Overseas +61 8 9476 5599
NuStar Mining Corporation Level 2, 16 Ord Street West Perth Western Australia 6005 Telephone (08) 9476 5599 Overseas +61 8 9476 5599
Dollar values in this report are Australian dollars unless otherwise stated.
Paulsens Royalty to be Acquired
Agreement has been reached in principle to acquire a royalty over the Paulsens Gold Project and an interest in the Wyloo Joint Venture both held by St Barbara Mines Limited.
The royalty, originally held by CRA, entitles the holder to 5 percent of the proceeds from gold sales in excess of 6,000 ounces from the Paulsens mining lease (M08/99). Nustar proposes to acquire the royalty for \$5.1 million.
St Barbara has also agreed to assign its rights in the Wyloo Joint Venture with Pelican Resources Limited on E08/853 and E08/854 (which are in close proximity to Paulsens). The initial consideration is \$50,000 with a subsequent payment of \$400,000 dependent on the establishment of a mining reserve.
Both transactions are subject to the completion of formal documentation and the approval of NuStar and St Barbara shareholders, with the Wyloo assignment also subject to the consent of Pelican.
Two banks short-listed to provide project finance have submitted final terms sheets following completion of technical due diligence. Funding includes provision for the royalty acquisition. The mandate is anticipated to be awarded by month end.
Development of the Paulsens gold mine continues on schedule with the decline face at 325 metres.
Mine development and funding remain on target for the production of first gold in May 2005. Project economics are enhanced by the acquisition and cancellation of the royalty.
Colin G Jackson Non-executive Chairman
20 September 2004