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Montezuma Mining Company seeks to realise value of graphite project
Friday, June 15, 2012 by Christine Feary
With graphite heating up, Montezuma has signed an option to purchase agreement that could see the company free carried through to a decision to mine at the Yalbra Graphite Project
Montezuma Mining Company (ASX: MZM) has reached an agreement for the sale of a majority stake in the Yalbra Graphite Project in Western Australia.
Buxton Resources (ASX: BUX) has acquired a three month option to purchase 85% of the Yalbra project.
Consideration for the option is $5,000 cash, with a further $5,000 to be paid if the offer is extended by three months.
If the sale proceeds, Buxton will issue 1 million shares to Montezuma in consideration for the 85% interest in Yalbra. Based on Buxton's current share price, this equates to about $95,000.
Montezuma will retain a 15% free-carried interest up to a decision to mine, following which the company can elect to contribute on a pro-rata basis or dilute to a 1% gross revenue royalty.
With demand for graphite heating up, Montezuma has picked a good time to realise the value of its graphite asset, while retaining exposure to the project in the long term.
Wide, high grade, near surface zones of graphite mineralisation have been identified over 4 kilometres of strike in historical trenches and drilling at Yalbra.
Buxton is planning a field work program to follow up on historical percussion drilling results, which include:
- 16.8 metres at 13.2% carbon from 15 metres, including 6.1 metres at 17.2% carbon;
- 23.5 metres at 19.5% carbon from 9 metres, including 15.2 metres at 25/2% carbon; and
Friday, June 15, 2012 by Christine Feary
With graphite heating up, Montezuma has signed an option to purchase agreement that could see the company free carried through to a decision to mine at the Yalbra Graphite Project
Montezuma Mining Company (ASX: MZM) has reached an agreement for the sale of a majority stake in the Yalbra Graphite Project in Western Australia.
Buxton Resources (ASX: BUX) has acquired a three month option to purchase 85% of the Yalbra project.
Consideration for the option is $5,000 cash, with a further $5,000 to be paid if the offer is extended by three months.
If the sale proceeds, Buxton will issue 1 million shares to Montezuma in consideration for the 85% interest in Yalbra. Based on Buxton's current share price, this equates to about $95,000.
Montezuma will retain a 15% free-carried interest up to a decision to mine, following which the company can elect to contribute on a pro-rata basis or dilute to a 1% gross revenue royalty.
With demand for graphite heating up, Montezuma has picked a good time to realise the value of its graphite asset, while retaining exposure to the project in the long term.
Wide, high grade, near surface zones of graphite mineralisation have been identified over 4 kilometres of strike in historical trenches and drilling at Yalbra.
Buxton is planning a field work program to follow up on historical percussion drilling results, which include:
- 16.8 metres at 13.2% carbon from 15 metres, including 6.1 metres at 17.2% carbon;
- 23.5 metres at 19.5% carbon from 9 metres, including 15.2 metres at 25/2% carbon; and
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