I contacted SM about the implications of WGX selling Kalgoorlie...

I contacted SM about the implications of WGX selling Kalgoorlie assets to NST. My questions: Hi, I am a shareholder and are wondering how the sale of the Kalgoorlie assets by WGX to NST will affect the cannon underground deal? Will it be transferred to NST as is? Will a new agreement have to be signed with new terms? Is there a minmimum period of time that WGX/NST has to start mining or can they just mothball the project and leave us with a dud deal? Thanks, Sam SM's response was: Hello Sam Our contract is with SKO and it does not matter who actually owns SKO they are still bound by the terms of the contract. From our perspective nothing has changed. No new agreement is required. The contract does include provisions for SKO to commence the production of gold within 12 months and other provisions should they not be active for a period of time in which case the right-to-mine falls away and we retain the asset (and the $1.5m paid upfront). If NST take a different production pathway to WGX and if this has impact on Sothern Gold we will notify the market but as it contractually stands right now nothing has changed from the perspective of Southern Gold shareholders. Cheers Simon