Next stepIAU up 13.3% overnight in Aus ... but I don't believe this is the reason as the announcement didn't come out until after the market had started to move AND this news, while perhaps good, was already expected (I beleive.)
SALE OF PAULSENS GOLD MINE COMPLETED
2 August 2010: Intrepid Mines Limited (ASX, TSX: IAU) (“Intrepid”)
advises of the completion of the sale of its Paulsens gold mine in Western
Australia.
Intrepid has received an amount of A$20.67 million, representing the initial
purchase price payment of A$15 million, the first A$1.5 million purchase price
instalment and a royalty on 12,456 ounces of gold production.
The purchaser, Northern Star Resources Limited (“Northern Star”), is now the
mine operator.
Further payments due to be made to Intrepid under the terms of the sale are as
follows:
• the second and final purchase price instalment of A$1.5 million, due on
31 October 2010;
• production royalties of A$335 per ounce of gold production on a further
38,544 ounces; and
• top-up payments of A$2.5 million each, due upon production of 57,500
ounces and 62,500 ounces of gold respectively.
Intrepid also has an option to purchase the Paulsens plant for A$1 in the event
that gold production of 62,500 ounces is not achieved or the top-up payments
are not made. In either circumstance, Northern Star assumes liability for
closure and rehabilitation costs at Paulsens, estimated at approximately
A$5 million.
Intrepid’s CEO, Brad Gordon, remarked: “The proceeds generated by this sale,
together with the current treasury position, aggregate A$43 million. The
remaining payments, if made in full, total a further A$19.41 million.
These funds will be largely allocated to support the exploration activity at our
Tujuh Bukit project in East Java, Indonesia.”