27th May 2014 10:52
LONDON (Alliance News) - Greatland Gold PLC Tuesday said it has started diamond drilling at its Firetower gold project in Tasmania and has agreed to extend its farm-in joint venture agreement with Unity Mining Ltd.
Under the existing farm-in agreement Unity Mining will earn up to 75% of the Firetower Gold project for expenditure of AUD7 million over five and a half years. The companies also had in place two milestone whereby Unity could earn an initial 51% of the project.
The first milestone was to spend a minimum of AUD200,000 within 12 months, which was completed, while the second was to spend AUD2 million within 30 months to earn 51%.
Unity advised that it would not achieve the second milestone within the 30 month period, which ended on April 6 - the shortfall was approximately AUD600,000. This has been due to a combination of impediments being primarily weather conditions and the time taken to interpret new geophysical data.
A 12 month extension has be agreed by both parties for the second milestone. Unity will now have until April 7, 2015 to spend the full AUD2 million.
Greatland Gold shares were quoted up 1.1% at 0.419 pence Tuesday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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