NMR sells Palmerville project to focus on core business
By Industry Queensland
Native Mineral Resources (ASX:NMR) is playing a hard hand in backing Blackjack to the hilt.
It comes as NMR announced binding sale agreements with Diversified Mining and Resources regarding the 10 tenements which comprise its Palmerville project in North Queensland.
The Palmerville Project is located along the mineral-rich Palmerville Fault, 60-190km north of Chillagoe.
Main image: Diversified Mining and Resources drilling program
Situated within the Chillagoe Formation, the area is known for copper, gold, and base metal deposits and lies along the same trend as major discoveries such as Red Dome, Mungana, and King Vol.
NMR managing director and chief executive officer Blake Cannavo said the move would help the company focus on core business.
“Divesting the Palmerville project allows us to deliver value to our shareholders from that project while we focus on our gold production assets at Charters Towers, particularly as we look to optimise and upgrade the Blackjack processing plant and commence processing ore from the Far Fanning stockpiles.
“With our recent announcement of a proposed JV with Great Divide Mining to process ore from the Yellow Jack gold project, we are looking to create a central gold processing hub at Blackjack and divesting Palmerville at this time makes sense.”
NMR has received a cash consideration of $50,001 for the sale of three of the tenements and the purchasers have also made a $50,000 non-refundable cash payment for a 45-day exclusivity period in respect of the remaining seven tenements.
At the end of the exclusivity period, and subject to completion of satisfactory due diligence, the purchasers will provide cash consideration of $500,000 for the remaining seven tenements.
Exploration to date has identified multiple targets, including eight high-priority prospects.
Diversified Mining and Resources says it is focused on the Cape York’s historic Palmer region, made famous for gold mining in the late 19th century.
The company said it was using new technology to look at greater depth.
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