+++++++++++++++++++++++++ Strata Mining Corporation NL ('Strata') is pleased to advise that it has completed a formal agreement for the acquisition of the Tasiast Gold Project (Mauritania) from Normandy LaSource Developpement SAS ('Normandy LaSource'). The Tasiast Gold Project is an advanced gold project which has a resource of in excess of 900,000 ounces at 3 g/t using a 1 g/t cut off. Along with the Tasiast Gold Project comes an extensive exploration land holding of approximately 5,000 sq kms in a very much under explored Archaean greenstone environment.
The purchase price for the project is:
(a) US$1,450,000 upon completion;
(b) US$500,000 within six months of completion
A further US$4,500,000 will be payable over approximately 3 years following a decision to mine plus 2% of production in excess of 600,000 oz.
Strata has paid the equivalent of US$9.00 per ounce of gold on the known resources. Work by Normandy LaSource (to a pre feasibility study level) indicates that the project has the potential to develop into a profitable gold mine with annual gold production of between 120,000 and 150,000 ounces at an anticipated total cost of less than US$200 per ounce. Furthermore, the study has indicated that the Tasiast Gold Project will be undertaken through the development of an open pit to a depth of approximately 150 metres. Preliminary studies indicate that the ore is of simple metallurgy and that recoveries in excess of 90% can be expected using a conventional cyanide leach process. It is the intention of Strata to take the project into a full scale bankable feasibility study which will require some additional resource drilling to upgrade reserves and resource status and include plant design and other technical specifications.
Strata and NM Rothschild and Sons (Australia) Limited have agreed in- principle terms and conditions for a US$2.7 million debt facility to part finance the acquisition of the project and provide hedging. Due diligence for this facility is under way and this is expected to be finalised by mid June.
The structure for the acquisition of the Tasiast Gold Project will be through Tasiast Gold Limited (a group member company of Strata) which is to be listed on the Alternative Investment Market ('AIM') board of the London Stock Exchange.
Fees payable in respect to the acquisition of the Tasiast Gold Project amount to $300,000. This will be satisfied through the issue of 8 million Strata shares at 2.5 cents per share and the balance of $100,000 to be satisfied through the issue of Strata stock on the completion of the Tasiast feasibility study at the then prevailing market price. Such shares are to be issued to the Parliament Place Group Pty Ltd.
Cheers Ralph
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