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Keras shares up on new gold tribute deal in Australia

Keras Resources, formerly known as Ferrex, has boosted its gold production profile, as it entered a tribute agreement on a deposit in Western Australia.
Keras shares up on new gold tribute deal in Australia
Keras managing director Dave Reeves noted the site was close to Keras' existing Grants Patch gold tribute deposits..

Keras Resources (LON:KRS), formerly known as Ferrex, has boosted its gold production profile, as it entered a tribute agreement on a deposit in Western Australia.

Shares in the group advanced almost 4% in early deals to stand at 0.675p.

The firm has struck a 50:50 profit share agreement with Kalgoorlie Mining to exploit the Wycheproof gold deposit - a high-grade, shallow deposit on an existing mining lease with a resource of 75,600t at 2.87 g/t for 6,974 ounces.

Keras managing director Dave Reeves noted the site was close to Keras' existing Grants Patch gold tribute deposits.

These are due to come into production targeting 20,000 to 30,000 ounces of gold a year in the second quarter of 2016 and the firm can use its existing fleet and infrastructure at Wycheproof.

"This latest agreement demonstrates the high level of activity in the region and the availability of deposits to be mined using a tribute method," said Reeves.

"The pricing environment for Australian gold is very attractive at the moment, and with this in mind I look forward to updating shareholders on further, similar initiatives in the not too distant future during this exciting time in Keras' development which should see us become the next, and possibly the only Australian focused gold producer listed on AIM."

The terms of the deal are 5% of predicted profit to be paid upfront to a 5% holder of the permit and A$70,000 to be paid to the owner of the right to mine from the first gold pour.

There is also a 2% royalty payable to Norton Gold Fields, and all profits to be split 50:50 between the right to mine owner and Keras.

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February 01 2016
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December 04 2015

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