Is Winchester JORC compliant resource?, page-39

https://www.ga.gov.au/scientific-to...-advice/australian-resource-reviews/magnesite


Industry Developments
Korab Resources Limited had entered into an agreement to sell the Winchester magnesite deposit located in the NT for up to $33.2 million in cash and royalties to Augur Investments Oü, a diversified Estonian investment company with interests in mining, infrastructure and commercial property development. The company negotiated a sale price of $2 a tonne of JORC code compliant magnesite resource. The current resource base consists of an Indicated Resource of 12.2 Mt at 43.1% MgO and an Inferred Resource of 4.4 Mt at 43.6% MgO. $16.6 million ($1 per tonne of resource) was payable on completion of the sale and an additional $1 a tonne of resource ($16.6 million) was payable as a royalty on each tonne of magnesite mined from the deposit. The amount of royalties was capped at $16.6 million. The agreement was subject to Korab Resources obtaining all regulatory and other approvals necessary for the sale of the assets, including the consent of the relevant Minister under the Northern Territory Mineral Titles Act. It was dependant also on Augur Investments completing a due diligence in relation to the transaction, but in May 2013, Augur advised that it would not proceed with the purchase of the Winchester deposit.