Xanadu Mines to acquire Oyut Ulaan copper-gold porphyry project in Mongolia
Xanadu Mines (ASX: XAM) will pay less upfront for the acquisition of the Oyut Ulaan copper-gold porphyry project in Mongolia, in return for a modest cash payment, some shares and issuance of performance share options.
Drilling by Xanadu has also intersected thick zones of gold-rich porphyry copper mineralisation from results released today.
The porphyry copper project covers a large district of around 40 square kilometres) comprising numerous mineralised porphyry centres.
The agreement struck with Temujin Mining Corp replaces an earlier agreement in May 2012 and its initial implementation which was delayed by changes in Mongolia’s foreign investment law.
The Mongolian Parliament recently approved amendments to the law allowing the acquisition to proceed.
The consideration for a 90% interest in the project located in the South Gobi region is now a payment of US$600,000, the issue of 5,000,000 Xanadu shares and the issue of performance share options once a JORC resource of 900,000 tonnes of contained copper equivalent is achieved at the project.
The Oyut Ulaan mining license has been granted and Xanadu has earned a 25% interest.
The completion of the transaction is conditional upon approval by Xanadu’s shareholders and the Government of Mongolia.
Drilling results
Reconnaissance drilling from four drill holes at the Oyut Ulaan project has intersected thick zones of gold-rich porphyry copper mineralisation from a 10 hole program which would provide significant encouragement given the widths and grades at surface.
Impressively, the results included 132.0 metres at 1.07% CuEq. from surface and 170.5 metres at 0.76% CuEq. from surface
Drilling by Xanadu has also intersected thick zones of gold-rich porphyry copper mineralisation from results released today.
The porphyry copper project covers a large district of around 40 square kilometres) comprising numerous mineralised porphyry centres.
The agreement struck with Temujin Mining Corp replaces an earlier agreement in May 2012 and its initial implementation which was delayed by changes in Mongolia’s foreign investment law.
The Mongolian Parliament recently approved amendments to the law allowing the acquisition to proceed.
The consideration for a 90% interest in the project located in the South Gobi region is now a payment of US$600,000, the issue of 5,000,000 Xanadu shares and the issue of performance share options once a JORC resource of 900,000 tonnes of contained copper equivalent is achieved at the project.
The Oyut Ulaan mining license has been granted and Xanadu has earned a 25% interest.
The completion of the transaction is conditional upon approval by Xanadu’s shareholders and the Government of Mongolia.
Drilling results
Reconnaissance drilling from four drill holes at the Oyut Ulaan project has intersected thick zones of gold-rich porphyry copper mineralisation from a 10 hole program which would provide significant encouragement given the widths and grades at surface.
Impressively, the results included 132.0 metres at 1.07% CuEq. from surface and 170.5 metres at 0.76% CuEq. from surface
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