News: Crocodile Gold to sell non-core assets in Northern Territory

Crocodile Gold (TSE:CRK) (OTCMKTS:CROCF) has agreed with Phoenix Copper (ASX:PNX) to sell 100 percent of the Northern Territory's Iron Blow and Mount Bonnie massive sulphide deposits for a 2 percent royalty in respect of any gold and silver production from the related tenements

Crocodile Gold will retain an option to buy back a 30 percent interest in the Iron Blow and Mount Bonnie properties within six months of Phoenix Copper completing a feasibility study, by paying three times the accumulated exploration expenditures on these tenements, Toronto-based Crocodile said in a statement today.

Shares rose 4.2 percent to 25 Canadian cents at 9:30 a.m. in Toronto. The stock has more than doubled this year.

Crocodile Gold has also entered into an option (Farm-In) agreement with Phoenix Copper, which allows Phoenix Copper the ability to earn up to a 90 percent interest in the nearby Burnside, Moline and Maud Creek base metal and gold exploration projects through a commitment to spend a total of $4 million in exploration expenditures over the next four years.

Under the deal, Crocodile Gold will retain the option to acquire 90 percent of any gold and silver deposit discoveries on any of the properties by paying Phoenix Copper three times the accumulated expenditure related to that deposit. This exploration agreement allows Phoenix Copper to explore for gold and base metals around the Maud Creek Mineral Resource while Crocodile Gold retains 100% ownership of the Maud Creek deposit and surrounding prospects on Mineral Licence ML30260.

Mineral Licence ML30260 is approximately 1,106 Ha in size and includes the Maud Creek Mineral Resource and Reserve. This deposit contains an Indicated Mineral Resource of 7.7 Mt @ 3.50 g/t Au for 871,000 ounces of gold and an Inferred Mineral Resource of 4.2 Mt @ 2.55 g/t Au for 343,600 ounces of gold.

The deal also provides for further consideration of $500,000 payable to Crocodile Gold in cash or shares in the event that Phoenix Copper completes a bankable feasibility study on any base metals deposits.

The transaction is subject to certain conditions that must be satisfied or waived on or before November 15.

Crocodile Gold is a Canadian company with three operating mines in Australia, in the State of Victoria and the Northern Territory.  The company has a combined land package in excess of 4,000 sq. km.