- Gold exploration company Cervantes (CVS) has settled its sale of the Albury Heath Project to Big Bell Gold Operations (BBGO)
- BBGO, a Westgold Resources subsidiary, paid Cervantes 330,313 Westgold ordinary shares worth $700,000
- However, these shares are only part of the full consideration for the Albury Heath project
- Following the transaction, Cervantes is seeking to upgrade its operations at the Primrose Project at Payne’s Find
- Cervantes shares remain suspended from quotation, last trading for 0.4 cents per share
Gold exploration company Cervantes (CVS) has settled its sale of the Albury Heath Project to Big Bell Gold Operations (BBGO).
BBGO is a wholly-owned subsidiary of gold miner Westgold Resources.
The Albury Heath Project is a historic gold mine located near Meekatharra, Western Australia. Cervantes first acquired a prospecting licence for the mine in October 2016, to add to its current exploration licence.
The company intersected high-grade gold at Albury Health in July 2018, and continued to identify targets there in 2019. The project reportedly has had bonanza-grade gold discovered in the area.
Per the agreement, BBGO paid Cervantes 330,313 fully paid ordinary shares in Westgold Resources, worth $700,000. However, these shares are only part of the full consideration for the Albury Heath project.
After entering this transaction, Cervantes will focus on upgrading its operations at the Primrose Project at Payne’s Find. The sale may also help Cervantes move towards early cash flow.
The company stated that it is extremely pleased with this outcome, considering the challenges it, and other junior companies, have had to deal with in recent years. One such challenge has included avoiding the heavy dilution of the company’s shares.
Cervantes also congratulated Big Bell Gold Operations and Westgold Resources on the purchase of the Albury Heath Project.
“We wish Westgold every success with the project, and a higher gold price to benefit both companies over the next few years”, the company wrote.
Cervantes shares remain suspended from quotation, last trading for 0.4 cents per share.