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Ausmex Mining Group (ASX:AMG) completes sale of Gilded Rose Project

Mining
ASX:AMG
25 May 2020 11:45 (AEST)
Ausmex Mining Group (ASX:AMG) - Managing Director, Matthew Morgan

Source: ResourceStocks

Ausmex Mining Group (AMG) has completed the sale of the Gilded Rose Gold Project to Hong Kong company Jin Resources for $4 million.

The project will now be transferred to Jin Resources’ Australian subsidiary.

This $4 million consists of a sum of $2.5 million that has already been paid. A total of $500,000 will be paid to Ausmex by May 22, 2021, and the remaining $1 million will be paid either when 10,000 ounces of gold has been produced or within two years of the completion of the transaction; whichever occurs first.

The money that Ausmex will receive from this transaction, as well as the cash it already has on hand, will provide the company with sufficient funding to progress the Mt Freda Complex.

Capital will also be used to progress the Golden Mile mining lease application, and fund additional programs at the Burra Copper and Gold Project in South Australia.

Jin has appointed a management team that has significant experience in developing mining projects into production, both in Australia and overseas.

Those in this team have held positions at large companies such as BHP Billiton and Rio Tinto as well as mid-tier companies in Australia and London.

Gilded Rose Project

The Gilded Rose Project is located in Queensland, and testing there has confirmed that there is high-grade gold present and mineralisation extends north and south along strike.

Significant results from the project include three metres at 11.16g/t gold from 79 metres including one metre at 22g/t gold, and four metres at 11.35g/t gold including three metres at 14.56g/t gold from 41 metres.

Jin hopes to restart production at the project in the upcoming months.

Ausmex is up a healthy 14 per cent and shares are trading for 4.9 cents each at 11:40 am AEST.

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