Great Southern Mining Ltd (ASX:GSN) has reached an agreement with the vendor of the Cox’s Find Gold Project in WA to defer the payment of $800,000 cash, originally due in August 2020, until August 2021.
As consideration, the company has paid the vendor $100,000 in cash with up to $20,000 being refundable to the company on release of tenement bonds to the vendor.
The deferment and a recent placement raising $3.1 million, provides the company with a strong funding platform to undertake its planned, aggressive exploration campaigns across the Cox’s Find and Mon Ami gold projects in Western Australia and the highly prospective Edinburgh Park project in north Queensland.
“An excellent acquisition”
Great Southern Mining executive chairman John Terpu said: “The Cox’s Find Gold Project has been an excellent acquisition for the company and we have already advanced the project considerably with proven high-grade remnant material and potential structural repeats identified.
“An extensive drilling campaign is planned for 2020 to further unlock the project’s value.
“We appreciate the support of the vendor for the deferral of the milestone payment which allows the company to entertain a number of options to strategically allocate capital for the company’s gold projects.
“With the Cox’s Find and Mon Ami brownfields projects and the Edinburgh Park greenfields project with exceptional discovery potential, all less than 15 kilometres from major operational gold mines, drilling and target generation are considered to be priority activities for the remainder of the year to create value for shareholders.”