Ramelius Resources (ASX:RMS) has agreed new terms for the acquisition of the advanced Vivien gold project in Western Australia from Agnew Gold Mining Company, a subsidiary of Gold Fields Limited.
Ramelius will still acquire the Vivien project for a total of A$10 million, of which A$500,000 has been paid.
Ramelius and Gold Fields have agreed that Ramelius will make two staged payments of A$5 million initially on or before 31 October 2013, and A$4.5 million on or before 30 June 2014, to complete the acquisition.
Ramelius will have access to the Vivien tenements for exploration purposes once it has completed the first payment, with infill and extensional drilling to commence shortly thereafter, expected in December.
The Vivien gold project is a high grade vein style deposit located near the Agnew gold mine in the northern goldfields of Western Australia, and carries a current Indicated Mineral Resource of 579,000 tonnes at 8.3 grams per tonne for 154,000 ounces of gold.
Ramelius has also agreed to place 25 million new ordinary shares at $0.20 to Sprott Asset Management to raise A$5 million, with the funds being directed towards finalising the acquisition.
The significant injection of funds by Sprott, a leading Canadian Fund Manager and substantial shareholder in Ramelius, demonstrates a high level of confidence in the new project.
Ramelius' strategy of adding a synergistic, low cost, high grade gold mine to its portfolio appears sound.
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