Aragon Resources Limited (ASX:AAG) Advises Sale of Territory Phosphate Pty Ltd to Rum Jungle Resources Limited (ASX:RUM)
Perth, Jan 12, 2011 AEST (ABN Newswire) - Aragon Resources Limited (
ASX:AAG) ("Aragon") advises has agreed to sell its of wholly owned subsidiary, Territory Phosphate Pty Ltd to Rum Jungle Resources Ltd (ASX:RUM) ("Rum Jungle") for a total consideration of A$1,000,000 cash and 16,000,000 fully paid ordinary shares in Rum Jungle currently trading at A$0.325 per share.
Aragon has also agreed to nullify its joint venture farm-in agreement between its wholly owned subsidiary Territory Phosphate Pty Ltd and Rum Jungle and maintain exposure to the Ammaroo and Barrow Creek phosphate prospects by taking a substantial shareholding in Territory Phosphate. Under the farm-in agreement announced on 30th June 2010, Rum Jungle was earning a 60% interest by spending A$3m on exploration over a 5 year period and had the right to earn an addition 10% by pending a further A$2m on exploration over an additional 2 years.
Managing Director, Paul Benson said "This agreement gives Aragon significant additional exposure to the exciting and broader commodity base of potash, phosphate, uranium and base metals assets of Rum Jungle. It puts ownership of the Ammaroo and Barrow Creek phosphate prospects under one roof which gives opportunity for Rum Jungle to advance development of the prospects in a simpler structure with all holders strategically aligned.
Aragon retains a core focus on the development of a multi-mine gold operation targeting 100,000 ounces per annum over 10 years at its key asset, the Central Murchison Gold Project (CMGP) in Western Australia.
For further information regarding all projects please visit Aragon's website to access all previous announcements at http://www.aragonresources.com.au
About Aragon Resources Limited
Aragon Resources Limited (ASX:AAG) is an Australia-based gold, nickel and phosphate exploration company. The principal activity of the Company is the exploration of minerals. Aragon has exploration tenements in Western Australia and the Northern Territory.
| ||
|
