- Beacon Minerals (BCN) executes an offer letter with Bulletin Resources (BNR) to acquire the Geko Gold Mine
- Beacon says the acquisition forms part of its strategy to increase the mine life and its nearby Jaurdi gold processing plant
- Bulletin will keep a royalty, profit share interest and joint venture interest in Geko and has already received gross royalty entitlements of $3.71 million
- The royalty consists of 10 per cent of the first 25,000 ounces of gold produced, four per cent of the next 60,039 ounces, and two per cent of all production over 85,039 ounces
- Bulletin is up 4 per cent to trade at 13 cents per share while Beacon is up 2 per cent to trade at 2.6 cents per share at 12:38 pm AEDT
Beacon Minerals (BCN) has executed an offer letter with Bulletin Resources (BNR) to acquire the Geko Gold Mine.
The Geko Mine lies only 15 kilometres south-southwest of Beacon’s Jaurdi gold processing plant in Western Australia.
Beacon stated the acquisition forms part of its strategy to increase the mine life at Jaurdi and complement existing operations.
Bulletin will keep a royalty in Geko which consists of 10 per cent of the first 25,000 ounces of gold produced, four per cent of the next 60,039 ounces of gold produced, and two per cent of all production over 85,039 ounces.
The royalty will be received each quarter during mining and will be reduced by a capped amount of $3.25 million at a rate of 3.33 per cent per ounce.
To date, Bulletin has received gross royalty entitlements of $3.71 million for a net $2.56 million in royalty payments.
Bulletin will also keep a 30 per cent profit share interest and joint venture interest.
“Bulletin sees this news as very positive,” Bulletin Non-Executive Chairman Paul Poli said.
We know Beacon, and we view Beacon as a very professional group and believe they would provide the best opportunity in the area to successfully mine and exploit the Geko gold mine to its maximum,” Mr Poli said.
“This in turn provides Bulletin the best chance of maximising the royalty and joint venture
returns from Geko. It really is the best news possible.”
Bulletin was up 4 per cent to trade at 13 cents per share while Beacon was up 2 per cent to trade at 2.6 cents per share at 12:38 pm AEDT.