sale of walbrook for 7m

Level 2, 41-43 Ord St West Perth WA 6005 (PO Box 1916 West P erth WA 6872)
Fx 08 9211 5700 [email protected]
ABN 44 099 574 991
Ph 08 9211 5777 www.jacksongold.com.au
ASX ANNOUNCEMENT
22 March 2007
JACKSON GOLD IN $7M SALE AGREEMENT WITH
SARACEN MINERALS FOR WALLBROOK RESOURCES
Diversified Australian resources company Jackson Gold Limited ("Jackson or The
Company") (ASX: JAK) is pleased to announce that it has entered into a conditional
agreement for the Sale of Mining Assets, including the Wallbrook gold resources, with
Saracen Gold Mines Pty Ltd ("Saracen").
The total value of the sale to Jackson is approximately $7 million, which is based on
the terms and conditions of the sale to Saracen Gold Mines.
Key commercial terms are;
1. Sale of tenements including the Wallbrook prospect, Porphyry North project
and Mulgabbie project (attached figure). The Company will retain a land
package of over 1,000 square kilometres in the Wallbrook region with a
number of established gold prospects.
2. A deposit of $250,000 payable on signing of the Agreement.
3. Settlement date of 31 May 2007. Conditions precedent are;
• Ministerial approval for tenement transfer
• Consent of third parties: and
• Consent of Jackson Gold shareholders (if required)
4. Cash payment of $2,000,000 and issue of 2,500,000 Saracen Mineral Holdings
Limited ("SAR") fully paid ordinary shares (with 6 month escrow) on settlement.
5. The issue of 5,000,000 SAR fully paid ordinary shares on Commencement of
Mining.
6. A Royalty of $1 per tonne on the first 2 million tonnes mined and treated.
Total consideration payable to the Company is approximately $7 million, assuming
mining of 2 million tonnes from the Project Area and an SAR share price of 35 cents.
The Company is extremely pleased to have resolved the future of the Wallbrook gold
resources following a detailed Scoping Study during 2006 and assessment of all
options to create shareholder value from this asset.
The Company believes that the large low-grade gold resources at Wallbrook are best
developed through the owners of local infrastructure. Saracen, as owners of the
Carosue Dam Operations and extensive gold resources in the region, can
immediately incorporate the Wallbrook resources into their current Definitive
Feasibility Study.
The Company has a high level of confidence that Saracen, with the benefit of the
Wallbrook resources, will bring the Carosue Dam Operations back into production in
the near term.
Level 2, 41-43 Ord St West Perth WA 6005 (PO Box 1916 West P erth WA 6872)
Fx 08 9211 5700 [email protected]
ABN 44 099 574 991
Ph 08 9211 5777 www.jacksongold.com.au
Company Strategy
In expectation of a successful settlement of the Wallbrook resources, the Company is
now primarily focussed on the Boolaloo copper-gold-uranium project.
Funding from the sale will be used to accelerate the company’s aggressive
exploration of the Boolaloo Project to assess the full extent of the mineralised system
in the Minga Bore area and within the remainder of the project.
In addition, the Kalgoorlie Nickel Project and the Peak Hill project are being actively
explored by Joint Venture partners Breakaway Resources and Gleneagle Gold.
Project generation activities are advancing with a view to assessment of project
opportunities in Australia and overseas.
For further information please contact:
Andy Viner, Managing Director John Williams
Jackson Gold Limited Professional Public Relations
Ph: 08 9211 5777 / 0419 960 501 Ph: 08 9388 0944 / 0412 422 636