Bligh Resources (ASX:BGH) has moved its 426,000-ounce Bundarra gold project in Western Australia closer to production with a new joint venture aimed at advancing a range of crucial studies and approvals.
Under the 50:50 JV, private Perth-based developer Angler Mining will fund, build and operate a plant to process Bundarra ore via a subsidiary called Contained Gold.
Contained Gold will pay Bligh A$25,000 in cash up front plus $200,000 by mid-November to fund the redemption of 4 million Bligh convertible notes held by Terrain Minerals (ASX:TMX). The notes are in relation to the settlement last year of a Bundarra sales agreement between Bligh and Terrain.
Angler will also subscribe for a $250,000 share placement in Bligh at $0.035 per share. Bligh stock was last trading at $0.018.
Contained Gold will sole fund the Bundarra feasibility study as well as costs incurred in obtaining all mining approvals within 18 months.
Development work in this regard will include a detailed mine infrastructure design, approvals and plan submissions as well as social, environmental, geotechnical, metallurgical and hydrological studies.
The JV will also pursue work to update Bundarra resources, which currently stand at about 6.8 million tonnes at 2g/t gold for 426,000 ounces of gold.
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