AGREEMENT TO SELL BRAZILIAN GOLD PROJECT US$10.14 MILLION (~A$13.25M) CASH Agincourt Resources Ltd (Agincourt) is pleased to advise an agreement has been reached to sell the Andorinhas Gold Project in Brazil to Troy Resources NL (ASX Code: TRY) for US$9.14 million initially, with an additional payment of $US1.0 million which is due after completion of all transfers and approvals. Agincourt has recently completed a Pre-Feasibility Study on the Andorinhas Gold Project. Although the results of this study show the potential for reasonable returns the capital costs to develop a stand alone operation are considered to be too high and the project’s size and geographical location does not meet Agincourt’s current strategic objectives. This divestment will ensure Agincourt’s management’s time is focused on the much larger and more profitable Martabe Gold and Silver Project in Indonesia, located in the same time zone as the Company’s operating Wiluna Gold Mine. Completion of the transaction is conditional on the execution of a formal Sale and Purchase Agreement which is currently being negotiated. Settlement of the transaction is expected to be on 30 November 2006. Funds from the sale will further strengthen Agincourt’s cash reserves and enable a greater focus on project development at Martabe and the significant new gold discovery at Kapur, (30 km to the south) along with an increased exploration effort at Wiluna, and Tropicana East in Western Australia and Reedy Creek in Victoria.
AGC Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
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