DJ Bullabulling Gold Buys Mining Lease M15/552 From Resolute Mining
Nov 26, 2012 (Dow Jones Commodities News via Comtex) --LONDON--Bullabulling Gold Ltd. (BAB.AU), whose primary asset is the wholly owned Bullabulling Gold Project, located near Coolgardie in Western Australia, said Monday it has agreed to acquire mining lease M15/552 from Resolute Mining Ltd. in exchange for 13.5 million ordinary shares.
-M15/552 is situated immediately west of the Bullabulling gold deposit and is surrounded on three sides by Bullabulling Gold's existing tenements.
-Work carried out during the pre-feasibility study indicates that the optimal open pit crest would encroach on M15/552 such that a portion of the targeted resource could not be extracted without access to this tenement.
-Bullabulling Gold's future exploration of the southern trend, including potential down dip extensions to the Edwards Prospect, will no longer be constrained by the tenement boundary.
-Bullabulling Gold will now also have greater flexibility in placing waste rock dumps, haulage roads and other infrastructure, which may lead to improved project economics, particularly where haulage distances can be reduced.
-Bullabulling Gold will assume Resolute's obligation to pay a royalty to Pacific-Nevada Mining Pty Ltd equivalent to one percent of the value of gold produced and sold directly from M15/552.
-Shares in London at 0900 GMT down 2.5% at 5 pence valuing the company at 14.45 million pounds.
-Write to Ian Walker at firstname.lastname@example.org
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