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Argent Minerals inks agreement with Box Hill property

Mining News - Published on Tue, 26 Jun 2018

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Argent Minerals Limited announced that it has entered into a new agreement with the owners of the neighbouring Box Hill property to the north of the Company's freehold land at the Kempfield project in NSW. The new agreement replaces and supercedes the previous agreement announced on 27 June 2017.


1. Option agreement with the owners of substantial neighbouring property facilitates continued community support of exploration and feasibility work as Argent prepares to drill Kempfield.

2. The agreement allows Argent to rapidly expand its freehold land ownership to 5.4 square kilometres at any time up to June 2020, extendable to June 2022, on fixed property purchase terms.

3. Kempfield de-risked as Argent pursues the newly identified large scale development scenario: a major zinc-silver-lead-gold project situated in large scale mining growth neighbourhood.

4. Kempfield project area strategically located in proximity to rail and road infrastructure, and mining-supportive communities with skilled trade capabilities.

Under the terms of the agreement, which reflects the Argent's excellent working relationship with its neighbours, the Box Hill owners have committed to not challenge the grant or validity of the Company's regulatory applications and permitting or ancillary titles related to mining and development approvals.

During the term the agreement, Argent has the right, as well as the obligation under certain circumstances, to purchase the Box Hill property at any time up to 12 June 2020 on fixed commercial terms, extendable at the Company's sole discretion up to 12 June 2021. The agreement may be extended for a further year to 12 June 2022 on the agreement of both parties.

The purchase obligation arises in the event that Argent conducts any significant ground disturbances such as the construction of a mining operation.

Under the terms of the agreement, Argent's obligation is to purchase the Box Hill property at the fixed price of AUD 2.4 million the market value assessed by a licensed valuer in May 2018, and the following compensation.

Argent will compensate the owners by arranging the construction of a new house and out-buildings at another specified property belonging to the owners, all such improvements to reflect the design and specific attributes of the current improvements at Box Hill.

On completion of the agreement, Argent will then own the existing house and out-buildings at Box Hill, which the Company intends to utilise as a mine manager's residence and/or offices.

During the term of the agreement Argent will pay the owners AUD 30,000 cash every six months, and issue AUD 30,000 worth of ordinary Argent shares on each anniversary both commencing by 5 July 2018.

The agreement represents a significant de-risking of the Kempfield project.

Noise and dust studies performed in relation to the Company's 2013 Environmental Impact Study determined that, since the Kempfield project mainly occupies Argent freehold land surrounded by hills, the main 3rd parties that would be affected by a mining operation are the owners of the Box Hill property located immediately to the north.

The agreement addresses these identified project risks through an agreed relocation and transition support process for the Box Hill owners, together with agreed commercial arrangements and the No Challenge provisions, as Argent continues to advance the project through further exploration drilling.

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Posted By : Rabi Wangkhem on Tue, 26 Jun 2018
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