Friday, 7th March 2008 (2374 views)

Focus Minerals has agreed a $30 million (£14.8 million) deal to acquire Committee Bay Resources' 50 per cent interest in the Redemption joint venture gold project in Australia.

Committee Bay said under the terms of the deal, it will receive $20.25 million in cash plus a further $9.75 million worth of Focus shares.

The company will retain upside potential for near-term gold and nickel production at the mine through its Focus shareholding, it added.

Funds from the Redemption deal will be also be used to advance Committee Bay's other exploration campaigns and acquire new targets.

Once completed, the transaction - which is subject to the approval of Focus shareholders and regulators - will give Focus a 100 per cent controlling interest in the 210 sq km Redemption tenement package, including the Three Mile Hill gold processing plant.

The Redemption joint venture has estimated measured resources of 31,014 ounces of gold, with indicated resources of 354,124 ounces of cold and a further 1.15 million ounces of gold in inferred resources.

 

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