Bird in Hand Royalty – Terramin (ASX:TZN)Resource (JORC 2012) -...

Bird in Hand Royalty – Terramin (ASX:TZN)
Resource (JORC 2012) - 265,000 ounces @ 12.6g/t

Maximus has an entitlement to a series of contingent payments and a royalty from Terramin Australia Limited (Terramin) in respect of the development of the Bird in Hand Gold Project (BIHGP) in South Australia. The entitlement is structured as follows:

- $1 million payable to MXR on first approval of Program for Environmental Protection and Rehabilitation (PEPR)
- $1 million payable to MXR on commencement of bullion production
- Ongoing royalty of 0.5% on >50,000ozs

Terramin advised the market in its’ March 2020 quarterly report that it has continue to advance its Mining Lease Application which was submitted to the South Australian Department for Energy and Mining (DEM) in June 2019 and is currently progressing a response to questions raised by DEM. Terramin has also advised that it is finalising a definitive feasibility study for BIHGP.

Maximus remains confident that the prospects for the development are very high. Terramin is committed to the development of BIHGP due to its high gold grades (circa 12gms gold per tonne), low capital expenditure requirements and very high returns. In the BIHGP Scoping Study released in October 2018, Terramin advised that based on an A$1700 gold price the project generated an NPV₍₈₎ of $101 million with a modest pre-production capital expenditure of $34 million.