Deutsche Rohstoff AG: Sale agreement for Georgetown Gold Mine signed

Deutsche Rohstoff AG

Deutsche Rohstoff AG: Sale agreement for Georgetown Gold Mine signed

Deutsche Rohstoff AG

Sales price AUD 16 million (EUR 13 million) in cash

Heidelberg/Brisbane. Deutsche Rohstoff AG sold its Georgetown Gold Mine, located in North-Queensland, Australia, for AUD 16 million (EUR 13 million) in cash. The buyer is JKO Mining Pty Ltd, a company based in Hamilton Brisbane, Queensland, Australia. The purchase was effected through the acquisition of the shares of Deutsche Rohstoff Australia Pty Ltd (DRAU) who owns the Georgetown Gold Project. Completion of the transaction is subject to approval by the Australian “Foreign Investment Review Board (FIRB)”. The approval is expected to be granted within the next few days.

AUD 0.5 million (EUR 0.4 million) of the purchase price has already been paid in June and August in the form of an exclusivity premium. Another AUD 9.5 million (EUR 7.7 million) is immediately payable, the rest of AUD 6 million will be paid in four instalments over the next 12 months. That vendor loan bears interest at 7% and is secured by a mortgage over the tenements held by DRAU.

Titus Gebel, CEO of Deutsche Rohstoff AG, said: “We are very pleased that the sale of Georgetown Gold Mine is now signed. We wish the purchaser every success for the future. The area around Georgetown undoubtedly still has considerable potential for gold production. ”

DRAU, as a previously 100% owned subsidiary of Deutsche Rohstoff AG, is the legal entity which holds the mining and exploration licenses, which are important for the Georgetown Gold Mine. The gold processing plant in Georgetown, Queensland, also belongs to the company. DRAU acquired the Georgetown Gold Project in 2009 and commenced the mining of gold bearing ores in late 2010. In the course of 2011, the company produced in excess of 13,000 ounces of gold and 9,000 ounces of silver. The purchaser is obliged to rename the company after the acquisition.

Heidelberg, 17 September 2012

 

 

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