2 December 2015 ASX Release
Unity Mining Limited ABN 61 005 674 073 | Binding Agreement for Off-Site Concentrate Processing for Dargues Project |
Corporate Details: | Unity Mining Limited ('Unity' or 'the Company') is pleased to announce the signing of a binding Heads of Agreement ('HOA') with Westlime Pty Ltd ('Westlime') under which Unity's wholly owned subsidiary (Big Island Mining Pty Ltd) will have the option to process gold / silver concentrate from Unity's Dargues Gold Mine Project at Westlime's Processing Facility, located at Parkes, New South Wales. Westlime is a 100% owned Australian business which focusses on the production of high quality fine lime, agricultural lime, dolomite, construction materials and roadbase from its facilities in Parkes, New South Wales. Under the terms of the HOA, Unity and Westlime have agreed to allow for Unity to process up to 50,000 tonnes of gold / silver concentrate on an annual basis, for a minimum period of 5 years (and able to be extended) commencing in Q3 2016. Under the terms of the binding HOA signed today between Unity and Westlime :
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ASX Code: UML | |
Issued capital: 1,143M Ordinary Shares 2.34M Unlisted Perf. Rights 43.2M Unlisted Options | |
Substantial Shareholders: Diversified Minerals Pty Ltd 159.1M (13.69%) | |
Directors: Non-Executive Chairman: Clive Jones Acting Managing Director: Frank Terranova Non-Executive Director: Gary Davison | |
Contact Details: | |
Unity Mining Limited Level 10 350 Collins Street Melbourne Victoria 3000 Australia | |
Tel: +61 (0)3 8622 2300 Fax: +61 (0)3 8622 2399 | |
Email: Info@unitymining.com.au | |
Website: www.unitymining.com.au |
ASX Release | Unity Mining Limited | Page 2 |
The terms of the binding HOA are to be detailed in a definitive final agreement to be executed by the parties by 31 January 2016. Unity is able to terminate the arrangement at any time, prior to making the final decision to proceed, without incurring any financial penalty, other than the loss of any payments made as described above. The execution of the HOA is of significant benefit for Unity's Dargues Gold Mine Project in that : Unity's Acting Managing Director, Frank Terranova commented : 'Delivering value accretive outcomes for shareholders remains a core focus of Unity. This is a further step in the advancement of the Dargues Gold project given Unity has recently determined that off-site processing of Dargues concentrate is preferred, thereby avoiding any cyanide processing on-site at Dargues.' 'In addition, we have recently completed a more thorough analysis of the project's tailings storage facility ('TSF') requirements which has determined that no modifications to the current TSF are required, and we can revert to the current fully approved tailings plan as part of the development strategy for Dargues.' 'Delivery of an optimal processing route for Dargues concentrate has been a clear objective of our current strategic review and we are very pleased to have achieved this milestone. Other activities and discussions associated with the strategic review remain ongoing and shareholders will be kept advised of any major developments as required.' Mr Terranova went on to say that the execution of the HOA with Westlime allowed Unity to proceed quickly to commence development of the Dargues Project following receipt of the remaining approvals from the New South Wales Government, which are expected in Q1 2016. Although Unity has the flexibility to continue to assess other alternatives, this agreement enables the funding and development planning to progress with a clear line of sight. For further information contact : Frank Terranova Kerry Parker Acting Managing Director Chief Financial Officer FTerranova@unitymining.com.au KParker@unitymining.com.au +61 3 8622 2300 +61 3 8622 2300 |
www.unitymining.com.au
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