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Thomson Resources's Bygoo JV Update

Mining News - Published on Tue, 09 Jul 2019

Image Source: Australian Resources
Riverston Tin Pty Ltd signed a Farm-in and JV Agreement in November 2016 for its Bygoo Tin Project with a Canadian investor. The project originally covered 3 titles - Exploration Licence 8260 (Bygoo), EL 8163 (Gibsonvale) and EL Application 5350 (Frying Pan). The initial arrangement was that BeiSur would pay USD A3 million by 30 November 2017 to earn a 51% interest. BeiSur also had an option to acquire a further 25% interest for an additional fee. The original JV agreement has been amended several times, principally by granting extensions to scheduled payment dates in the light of difficult market conditions for mineral exploration investment in Canada. Also, the title EL8531 which was granted to Thomson Resources over the ELA 5350 area was excised from the joint venture in March 2018. BeiSur retained a first right of refusal over sale of that EL and a preferred right to purchase any tin ore produced from it.

As amended the BeiSur-Riverston Bygoo JV agreement has resulted in USD A1.5 million being paid to Thomson to fund tin exploration. However, a further USD 1.5 million was due on 30 June 2019, along with a holding fee of USD 600,000. This has not been received; Beisur is in default and the agreement has expired. Nevertheless, Thomson is in discussion with BeiSur to see if acceptable new arrangements can be agreed to. These negotiations are expected to take several weeks.

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Posted By : Sanju Moirangthem on Tue, 09 Jul 2019
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