news out, page-2

News just out. Cortona enteres into agreement to buy Moly Mines gold assets. This is just a summary of the ann, however, gold project to be acquired is open at depth and along strike. Dargues Creek has a inferred resource of 310,000oz. Lots of potential!!

Still reading the entire announcement. Summary below.

Cortona agrees to buy Moly Mines NSW gold assets
09:33, Friday, 9 February

Cortona Resources Ltd (ASX code: CRC) has entered a binding agreement to buy the NSW gold assets of Moly Mines Ltd (ASX code: MOL). The deal is subject to satisfactory legal and technical due diligence from both parties, CRC shareholder approval and completion of a capital raising by the company.

The assets incorporate six gold projects covering a total area of about 1500 sq km and include the flagship Majors Creek project, which encompasses recently delineated primary gold resources within NSW's largest area of historic alluvial gold workings.

As a result of the transaction, the focus of Moly Mines will be strictly on the metal molybdenum and its associate, copper, while retaining significant exposure to gold through a Cortona shareholding.

Payment terms of the agreement:
Stage 1 - Payment upon settlement
* $5 million cash.
* 12 million CRC shares issued at a deemed price
of 20c each.
* 8 million 35c options issued for nil value
(two-year term).
Stage 2 - Royalty payment upon the delineation of 1m ozs of indicated/measured gold resource, or a decision to mine
* $4 million cash.
* 8 million 50c options (five-year term). These options will be issued up front, but will only vest and become exercisable if the one of conditions referred to above is satisfied.

*****

Managing director Mr Peter van der Borgh said, "This is an exciting step for Cortona, which will see us become a major Australian gold explorer.
"The assets will provide the company with a defined inferred resource and excellent exploration opportunities at a time when the gold price is over $A800/ounce and looking strong.
"Dargues Reef is a significant ore-body with plenty of upside while the Majors Creek project, as a whole, is an explorer's dream.
"The management at Moly Mines identified in us a team with the credentials and drive to do justice to the projects.
"Each of the NSW assets appears to have exploration potential.
"Majors Creek in particular is viewed as the right complement to the company's North Monger project near Kalgoorlie, where resources have recently been increased and which remains on target to generate revenue in the near future.
"From the outset, the company will have the necessary cash, people and infrastructure to rapidly advance both projects, thereby continuing our very aggressive approach to exploration."
ENDS

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