Monto Minerals Limited (Monto) is pleased to announce that the trucking of ore from the Baal Gammon mine to Kagara Limited’s (Kagara) Mt Garnet processing facility commenced on 28 November 2011.
Operations at the Baal Gammon mine commenced in late September 2011 with ore mined to date stockpiled on site.
On 12 May 2011, Monto announced the signing of a Mineral Rights Agreement (MRA) for Kagara to mine Baal Gammon.
Transaction terms are as follows: - $6,000,000 initial capital payment payable in Kagara shares (payment complete) - 2.5% NSR (Net Smelter Royalty) payable on all metals for the first 550,000t of ore processed - 2% NSR payable on all metals over 550,000t of ore processed
Under the terms of the Baal Gammon MRA Kagara will pay the NSR to Monto within five business days of receipt of payment from the product (concentrate) buyer. Kagara at present generally sell concentrate from the Mt Garnet facility on a monthly basis.
KZL Price at posting:
33.0¢ Sentiment: LT Buy Disclosure: Held
