- Materials stock Minotaur Exploration (MEP) has completed its purchase of the Pyramid Project in North Queensland from Avira Resources (AVW)
- The company bought the asset from for $250,000 in shares, options and cash, as well as several future payments
- These include $150,000 in cash and shares once a specific resource is allocated to Pyramid, along with a 1.5 per cent royalty payment
- The project itself comprises three tenements which are considered highly prospective for gold
- Shares in MEP are today trading for 15.5 cents each, up 10.7 per cent, while
Minotaur Exploration (MEP) has completed its purchase of the Pyramid Project from fellow ASX-lister Avira Resources (AVW).
Both companies have executed the sales and purchase agreement for the project after Minotaur completed due diligence on Pyramid.
The asset in question is located in North Queensland and comprises three tenements which are considered highly prospective for gold.
Minotaur bought the project from Avira for a total of $150,000 cash, including a $25,000 option fee (which had already been paid), and $100,000 in MEP shares.
Additionally, it’ll be required to hand over $150,000 in cash and shares once the project’s JORC resource hits 25,000 ounces, grading at least 1.8g/t gold.
MEP will also pay AVW a 1.5 per cent net smelter royalty (NSR) payment for the first 50,000 ounces of gold produced from Pyramid.
The transfer of the North Queensland project will officially occur once the state’s Department of Mines signs off on the move.
Minotaur plans to conduct drilling at the Gettysberg Fault corridor within Pyramid, following up on interpreted high-grade shoots.
The drilling is due to begin in December, with results not expected until early next year.
Shares in Minotaur Exploration are currently trading for 15.5 cents each, up 10.7 per cent at 12:01 pm AEDT.