$16.6 million of the consideration ($1 per tonne of resource) will be payable on completion of the sale and an additional $1 per tonne per tonne of resource ($16.6 million) will be payable as a royalty on each tonne of magnesite mined from the deposit. The amount of royalties will be capped at $16.6 million. The agreement is binding upon the parties but is subject to the following conditions precedent to be fulfilled by 31 March 2013:
Exceptional economics of 2mln ounce Au project General Update 07-03-2013 Korab Resources Announces Exceptional Economics of Bobrikovo Gold Project
Korab Resources provided an update regarding the estimated capital and operating cost for Stage 1 of the development of the Bobrikovo gold project, reporting that gross profit is estimated at $11.5m per annum (equivalent to 7,670 ounces gold per annum) and production is estimated at 11,730 ounces gold in concentrate per annum. Other highlighrs include: the mineral resource increased to +2Moz gold over two years; 330,000t of ore mined and stockpiled by the company ready for processing; and all permits and approvals for the development of the oxide zone and gravity extraction have been secured and are in hand.
