FOLLOWING through on plans to divest its resources, Balamara Resources has secured a farm-in agreement with Alkane Resources for its Elsienora gold project in NSW.
The agreement includes two exploration licenses – EL 6082 and EL 6767 – which are 75km south of Blayney and the McPhillamys project.
Alkane could earn up to an 80 per cent interest by spending $500,000 on exploration across three years, with a minimum spend of $250,000 across two years.
The company already has considerable technical knowledge of the region after discovering the 2.96 million ounce McPhillamys gold deposit in 2006. Balamara managing director Mike Ralston said the agreement would allow the company to focus its resources on overseas projects, including the Monty zinc-lead-silver project in Montenegro and the Bogdan copper project in Poland.
“We have recently stated that we will be focussing our attention on our tier one projects, namely the Nowa Ruda coking coal in Poland and the completion of the Togo phosphate tender in West Africa,” Mr Ralston said.
“We would like to divest the company’s original assets in a way that delivers both value and upside potential for shareholders moving forward. “We acknowledge the experience of Alkane Resources in this area and their success to date in locating significant gold deposits; this makes them an excellent partner for Balamara at Elsienora.
“We wish them every success in their exploration activities and we look forward to working with them in the future,” he said.