Accent Resources signs Norseman sale agreement with Boomerang

Accent Resources has signed binding agreements to sell its Norseman Gold Project to Boomerang Mining Capital for up to A$4m ($2.77m) in cash.

The Norseman Gold Project is situated approximately 5km south of the Norseman town site within a highly mineralised section of the southern Norseman-Wiluna greenstone belt in Western Australia.

Under the terms, Accent will receive an initial payment of A$3m in cash on settlement.

An additional A$1m will be paid within ten business days after a mining lease is granted and Boomerang secures the necessary approvals to start commercial gold mining at the site.

The agreement allows Accent to retain full ownership of the project’s iron ore and platinum group element (PGE) mineral rights under a mineral sharing agreement.

Additionally, the company will obtain a gross revenue royalty of 4% on all minerals produced from the project, except for iron ore and PGEs.

Boomerang has an option, set out in the Royalty Deed, to acquire half of this royalty interest for A$4m in cash, which would reduce the royalty to 2%.

Mineral Mining Services has guaranteed Boomerang’s obligations related to this transaction.

Completion of the deal is subject to due diligence, regulatory approvals and the signing of related documents.

Settlement is scheduled to take place within five business days once these conditions have been met or waived.

Accent said proceeds from the transaction are expected to strengthen its balance sheet and support progress on its iron ore strategy.

Accent Resources managing director David Sun said: “This transaction delivers immediate value for our shareholders while allowing Accent to retain the long-term upside of the project’s iron ore and platinum group element potential.

“We are pleased to partner with Mineral Mining Services, an experienced Western Australian mining contractor that we believe is well positioned to efficiently develop the Norseman Gold Project.

“The ongoing 4% gross revenue royalty also provides continued exposure to the project’s future success.”

“Accent Resources signs Norseman sale agreement with Boomerang” was originally created and published by Mining Technology, a GlobalData owned brand.