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Be the first with the news that moves the market- Rugby Mining (TSXV:RUG) has signed an agreement with the Australian-based Calidus Resources, regarding three three mining tenements
- Pending relevant approvals, Calidus will pick up a 70 per cent interest in Rugby’s Otways and Reedies projects, in Western Australia
- Through the agreement, Calidus will need to perform over 6000 metres of exploration work, alongside a cash payment of just over C$1 million
- Once the sale is complete, Rugby is pivoting to focus on its Colombian mining operations
- Rugby Mining (RUG) is in the grey and is trading at $0.085 per share, with a market cap of $7 million
Rugby Mining (TSXV:RUG) has signed an agreement with the Australian-based Calidus Resources, regarding three three mining tenements.
Through the deal, Calidus can secure a 70 per cent interest in Rugby’s West Australian assets.
According to the agreement, Calidus will perform approximately C$183,000 worth of exploration at the site, including 1200 metres of drilling on the tenements, within the next year.
Following that, Calidus will have to spend an approximate $458,000, including 3000 metres of drilling within 30 months.
The last stage of the purchase requires Calidus spending a further $457,543, completing a further 3000 metres of exploration, and issuing Calidus shares, worth approximately C$228,730.
The Otways project is located 50 kilometres from Calidus’s flagship Warrawoona gold project, in the famous Pilbara mining region of Western Australia.
Warrawoona has an indicated resource totalling 800,000 gold ounces, plus a further 450,000 inferred ounces.
President and CEO of Rugby Mining, Bryce Roxburgh said the company was pleased to partner a successful explorer like Calidus.
“Although this represents a considerable endorsement of Otways potential, it will allow us to focus on our South American priority projects.
“Following the lockdown in Colombia, we intend to immediately follow up the permitting of the very prospective gold tenure applications acquired through Rugby’s purchase of the local subsidiary of the major North American gold miner, when it decided to exit Colombia.
“We expect that the restrictions will begin to be lifted in Colombia in June,” he said.
Rugby Mining (RUG) is in the grey and is trading at $0.085 per share at 10:23 am EDT.
