Sell gold | Crocodile <b>Gold</b> Ends Month with Agreement to <b>Sell</b> Non-core Assets <b>...</b> |
| Crocodile <b>Gold</b> Ends Month with Agreement to <b>Sell</b> Non-core Assets <b>...</b> Posted: 28 Aug 2014 05:00 PM PDT Articles Return to Article Directory Canada's Crocodile Gold (TSX:CRK,OTCQX:CROCF) is capping off the month of August with a plan to sell two of its non-core assets in Australia's Northern Territory. The company announced this morning that it has entered into a sales agreement under which it will sell Phoenix Copper (ASX:PNX) 100 percent of its Iron Blow and Mount Bonnie massive sulfide deposits for a 2-percent royalty "in respect of any gold and silver production from the related tenements." The two companies have also entered into an option agreement that will allow Phoenix to earn up to a 90-percent interest in the Burnside, Moline and Maud Creek base metals and gold exploration projects. To do so, Phoenix must spend $4 million on exploration expenditures in the next four years. Explaining the two deals to Gold Investing News, Rob Hopkins, Crocodile's investor relations manager, said, "our Northern Territory land package is rather large, so we have a number of properties that are ready for exploration." However, as the company doesn't currently have the financial backing to run its own exploration programs, it made sense to pass the projects on to another interested party and thereby "reduce [its] carrying costs." Keeping options open That said, Crocodile isn't backing completely away from any of the projects. In terms of Iron Blow and Mount Bonnie, it will retain an option to buy back a 30-percent interest in the properties within six months of Phoenix completing a feasibility study. If it chooses to do that, Crocodile will have to pay "three times the accumulated exploration expenditures on those tenements." Similarly, the company will retain the option to acquire 90 percent of any gold and silver deposit discoveries at Burnside, Moline and Maud Creek. Again, if it decides to do that, it will have to pay Phoenix "three times the accumulated expenditure related to that deposit." As Hopkins said, "we're passing [the projects] on to somebody else who's interested in the base metals, and the way the deals are structured, if there is any gold or silver, which is what we're focused on, we have the opportunity to look at optioning those back. It's a win-win scenario for both of us." Conversely, if Phoenix completes a bankable feasibility study on any of the base metals deposits it will have to pay Crocodile $500,000 in cash or shares. In closing, Hopkins stressed that Crocodile will continue to own the Maud Creek deposit and the surrounding prospects on mineral license ML30260, which includes the Maud Creek mineral resource and reserve. It has an indicated mineral resource of 7.7 million tonnes at 3.5 grams per tonne (g/t) gold for 871,000 ounces of gold and an inferred mineral resource of 4.2 million tonnes at 2.55 g/t gold for 343,600 ounces of gold. "The actual project that has the resource on it is still 100-percent owned by Crocodile Gold," he noted, "because that's still what we would consider a strategic asset for the company." What's next? As today's deals suggest, moving forward investors can expect Crocodile to hone in on its core operations, which include three gold mines across Australia. Also, given that the company has withdrawn from a memorandum of understanding that would have seen it provide Thor Mining (ASX:THR,LSE:THR) with custom milling and processing of ore, it's now on the hunt for other such opportunities. Shares of Crocodile closed today at $0.245 after reaching a high of $2.50 earlier in the day. Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article. Return to Article Directory Read next article Mines Management to Participate in the 4th Annual Global Investment Conference in New York Read more articles by Charlotte McLeod+  |
| Crocodile <b>Gold</b> to <b>sell</b> non-core assets in Northern Territory; shares <b>...</b> Posted: 28 Aug 2014 07:19 AM PDT 
(TSE:CRK) (OTCMKTS:CROCF), a miner operating in Canada and Australia, agreed with Phoenix Copper Ltd. to sell 100 percent of the Northern Territory's Iron Blow and Mount Bonnie massive sulphide deposits for a 2 percent royalty in respect of any gold and silver production from the related tenements. Shares advanced. will retain an option to buy back a 30 percent interest in the Iron Blow and Mount Bonnie properties within six months of Phoenix Copper completing a feasibility study, by paying three times the accumulated exploration expenditures on these tenements, Toronto-based Crocodile said in a statement today. Shares rose 4.2 percent to 25 Canadian cents at 9:30 a.m. in Toronto. The stock has more than doubled this year. has also entered into an option (Farm-In) agreement with Phoenix Copper, which allows Phoenix Copper the ability to earn up to a 90 percent interest in the nearby Burnside, Moline and Maud Creek base metal and gold exploration projects through a commitment to spend a total of $4 million in exploration expenditures over the next four years. Under the deal, will retain the option to acquire 90 percent of any gold and silver deposit discoveries on any of the properties by paying Phoenix Copper three times the accumulated expenditure related to that deposit. This exploration agreement allows Phoenix Copper to explore for gold and base metals around the Maud Creek Mineral Resource while retains 100% ownership of the Maud Creek deposit and surrounding prospects on Mineral Licence ML30260. Mineral Licence ML30260 is approximately 1,106 Ha in size and includes the Maud Creek Mineral Resource and Reserve. This deposit contains an Indicated Mineral Resource of 7.7 Mt @ 3.50 g/t Au for 871,000 ounces of gold and an Inferred Mineral Resource of 4.2 Mt @ 2.55 g/t Au for 343,600 ounces of gold. The deal also provides for further consideration of $500,000 payable to in cash or shares in the event that Phoenix Copper completes a bankable feasibility study on any base metals deposits. The transaction is subject to certain conditions that must be satisfied or waived on or before November 15. is a Canadian company with three operating mines in Australia, in the State of Victoria and the Northern Territory. The company has a combined land package in excess of 4,000 sq. km. |
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