South-Africa-based bullion producer AngloGold Ashanti Limited (ASX:AGG) has sold a gold project in Western Australia to Genesis Minerals Limited (ASX:GMD).
Genesis says acquiring the Viking Gold Project will give it access to a series of high grade, drill ready gold targets and a high-quality database.
The total purchase price for the project is $50,000 and a deferred payment of $2 per measured or indicated resource ounce.
Genesis will also pay a royalty to AngloGold equal to 1.25 per cent of the net smelter return generated from the sale of any gold mined or produced from the tenement area, after commercial production of 25,000 ounces.
Shares in AngloGold Ashanti rose about 1.5 per cent following yesterday’s announcement while shares in Genesis Minerals soared 60 per cent to end at $0.24.
AngloGold Ashanti booked a net loss of almost $2.1 billion in the first half of the 2013 calendar year.
