- Carnaby Resources (CNB) has updated the market on the sale of the Tick Hill Tailings Dam in Queensland
- In early August, Carnaby revealed it had sold its Tick Hill Tailings stockpiles to private mining company BIM Metals for $6 million
- The $6 million consists of $4 million in cash and a five per cent net smelter return (NSR) — equating to $2 million
- Thanks to a recent $500,000 cash payment, Carnaby has now received $3.25 million in cash, with the remaining $750,000 to be received 44 days after full-scale production begins
- Additionally, the company will begin receiving the 5 per cent NSR in January
- Carnaby is down 2.6 per cent on the market with shares trading at 37.5 cents
Carnaby Resources (CNB) has updated the market on the sale of the Tick Hill Tailings Dam in Queensland.
In early August, Carnaby revealed it had sold its Tick Hill Tailings stockpiles to private mining company BIM Metals for $6 million.
The $6 million consists of $4 million in cash and a five per cent net smelter return (NSR) on all gold sales — equating to $2 million based on the gold price at the time of the announcement.
Carnaby stated that the sale will allow it to accelerate exploration at its project in the Mallina Basin.
Interestingly, Carnaby stated it will retain full ownership of the Tick Hill Project and Tick Hill Open Pit which has a probable ore reserve of 48,000 tonnes at 6.53g/t gold for 10,200 ounces.
Thanks to a recent $500,000 cash payment, Carnaby has now received $3.25 million in cash with the remaining $750,000 to be received 44 days after full-scale production begins in January.
Additionally, 6000 tonnes of bulk metallurgical sample pit has been successfully collected and processed.
Primary results and sampling shows positive grades and a 23 per cent higher grade than the resource model.
Carnaby will start receiving the 5 per cent NSR payment in January.
“It is pleasing that the proceeds from the successful sale of the Tick Hill Tailings stockpile are flowing in, allowing Carnaby to aggressively pursue exploration and growth opportunities into the future,” Managing Director Rob Watkins said.
“We also look forward to receiving drill results from Tick Hill and Strelley with great anticipation for another strong year of growth for the company,” he added.
Carnaby is down 2.6 per cent on the market with shares trading at 37.5 cents at 10:39 am AEDT.