Western Australia based US Nickel (ASX: USN) is not proceeding with the 2010 proposed takeover of Argent Minerals (ASX: ARD), but this does not impact the sale of the Bullant Gold project from Argent to US Nickel.
The US Nickel purchase of Bullant has dealt the company into the gold producing sector, without the need for a takeover of Argent and direct exposore to the development of Bullant.
In the deal US Nickel will issue 44 million shares to Argent shareholders, and consent to the cancellation of 19.5 million Argent shares held by US Nickel.
The Bullant underground gold mine and associated tenements are located 65 kilometres from Kalgoorlie, Western Australia, with site facilities and equipment included in the transaction.
Bullant is forecast to produce ore in the first half of 2011, with scope for increases in resources with deeper drilling below current mine levels.
If depth extensions are proven, Bullant could have a possible 8-10 year mine life.
The mine site is serviced by an extensive network of roads, power and water, with a broad range of mining and exploration services readily available in the Kalgoorlie region.