Alicanto, which is chaired by Bellevue Gold’s founding chairman, Ray Shorrocks, has negotiated an earn out-heavy deal to buy Mt Henry, an undeveloped mine located 15 kilometres from Western Australia’s Norseman region. It claims to have a resource of 900,000 ounces at 1.2 grams per tonne of gold,
Under the deal, Alicanto will pay Westgold $15 million cash and a 19.9 per cent stake in itself upfront. Further $5 million will be due to Westgold when the buyer has drilled 20,000 metres of Mt Henry, followed by $10 million when it can firm up a mineral resource estimate of 2 million ounces, and another $10 million to $15 million once it has hit the final investment decision and kicked off construction at the mine.
Now in a trading halt, to dund the deal, Canaccord Genuity, Argonaut Securities and Euroz Hartleys were involved in raising $28 million at 5.5¢ a share
