Alt Resources Ltd (ASX:ARS) has executed a Binding Term Sheet with Blue Cap Mining Pty Ltd for the commencement of mining operations at the Tim’s Find Gold Project within the company’s Mount Ida and Bottle Creek Gold Project’s near Menzies in Western Australia.
Under the provisions contained in the MSA Term Sheet, Blue Cap will provide mining, transport, processing, drill and blast and associated mining services to the company.
The Terms and Conditions include:
- Blue Cap to fund mining operation via a A$1.5 million Working Capital Facility (WCF) which will continue until ore sales allow full payment of all invoices;
- The WCF is to be fully repaid within four months from first drawdown, subject to a force majeure clause;
- Net Profit generated by Project will be shared as 34% to the Contractor and 66% to the Principal;
- Blue Cap retains the right to subscribe to 20 Million fully paid ordinary Shares in the Company being five hundred thousand (500,000) dollars at a deemed issue price of A$0.025;
- The Contractor will engage and appoint the sub-contractors for ore haulage and processing treatment. Any appointment is subject to the approval of the Principal.
In July 2019 the company undertook a range of studies related to the Mt Ida Scoping Study.
Subsequent work, and engagement with Blue Cap, has led to the recognition that Tim’s Find provided the company with an opportunity for early cash flow without the initial capital requirement associated with the processing plant outlined in the Scoping Study.
The company has progressed development onsite in preparation for small scale mining operations with the Tim’s Find Clearing permit and Haul Road permit now approved. The Bottle Creek camp extension has been completed.
The mine plan will be lodged in the coming weeks and operations are expected to commence once mining approval is granted by the regulator.