Any deal is better than what CTO was looking at IMO---- Citigold...

Any deal is better than what CTO was looking at IMO----
Citigold enters $72 million Agreement to Build Gold Mine
2 March 2015: Brisbane, Australia – Citigold Corporation Limited (“Citigold” or
“Company”)(ASX:CTO) is pleased to advise that it has reached an agreement with
Kingsford Investment Groups Ltd (“KIG”) to invest $72 million into a joint venture (JV) to
develop the Charters Towers gold field. Citigold will manage the project on behalf of the
JV.
The incorporated joint venture to be formed between Citigold and KIG aims to
aggressively expand the underground operations at Charters Towers moving back into
low cost sustained gold production.
The Central area of the goldfield will be the initial focus with the Imperial area being
brought on stream once Central is cash flow positive. The Central and Imperial are the
two main access declines into the one Charters Towers gold mine, with all the ore being
processed in the existing centralized processing facility.
This joint venture aims to turn this gold deposit into a large-scale gold mine with an initial
annual production of 50,000 ounces of gold growing to over 300,000 ounces of gold per
annum at completion of the planned expansion.
KIG is an international private investment company. They manage a varied portfolio of
interest including oil & gas, green energy, property and ownership in operating
businesses. They are a strategic investor, balancing solid business disciplines with
entrepreneurial expertise and adding value to their investments by utilizing their wide
network of international contacts to assist investors in achieving their strategic goal.
The principle terms of the agreement are:
 Structure - Incorporated Joint Venture (JV).
 Offtake - All gold produced is sold to KIG at market prices.
 KIG payments – KIG’s interest will be earned in the JV after the receipt of the
$72 million total investment due to be paid as follows;
i. $10 million on or before 6 May 2015
ii. $62 million on or before 10 June 2015.