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atx & sfg re focus

  1. Carls

    2,839 posts.

    Agreement for sale of Coolgardie Project to Austminex

    Document date: Mon 23 Dec 2002 Published: Mon 23 Dec 2002 08:52:39
    Document No: 230066 Document part: A
    Market Flag: Y
    Classification: Issued Capital - Other , Asset Acquisition , Asset Disposal
    ST FRANCIS GROUP LIMITED 2002-12-23 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    Further to the announcement of 10th December 2002 the Board of St
    Francis is pleased to advise that it has signed a formal agreement
    for the sale of it's Coolgardie Project to ASX listed company,
    Austminex NL (ATX). This sale is, amongst other things, conditional
    on the purchase of Focus Minerals Ltd by Austminex.

    Austminex has also agreed to buy all of the shares of the unlisted
    public company, Focus Minerals Limited ("Focus") subject to
    completion of Due Diligence by Austminex and final approval by
    shareholders of both companies.

    The St Francis Coolgardie Project and the Focus assets are
    exploration and mining rights located in the Coolgardie-Kalgoorlie
    region of Western Australia. These tenements cover over 200 square
    kilometres and contain inferred resources of 230,000 ounces of gold
    in 5 different deposits. There is excellent potential to expand the
    resource base in identified projects and in large under explored
    blocks.

    As consideration for the St Francis Coolgardie Project tenements
    Austminex will pay to St Francis the sum of;

    a) $200,000 in cash and will issue St Francis with 8,000,000 shares
    in Austminex. These shares will be unrestricted except for any
    restriction which may be imposed by the ASX; and

    b) $750,000 in cash or shares on or before 31 December 2003; and

    c) $750,000 in cash or shares on or before 31 December 2004.

    The sums payable to St Francis pursuant to (b) and (c) will be
    payable, as cash or shares at the sole discretion of Austminex,
    except that St Francis will be entitled to require by notice in
    writing to Austminex that up to 50% will be paid as shares.

    Payment of cash pursuant to (b) and (C) Will incur interest. Any
    shares issued will be issued at 80% of the weighted average market
    price over the 30 days prior to issue.

    St Francis is pleased to have a retained an interest in the
    Coolgardie Project through its holding of Austminex shares. In this
    way it will be able to participate in the development and growth of
    the Coolgardie Project.

    In commenting on the purchase by Austminex of the St Francis
    Coolgardie Project and all of the shares of Focus, Austminex's
    Chairman, Peter Vanderspuy, says, "This is an opportunity to start
    off with a large land position in a highly prospective gold producing
    province."

    Tom Eadie, Austminex's Managing Director, adds, "The combination of
    resources that may be amenable to generating a quick cash flow, plus
    the potential that is already identified by drilling, make this a
    very exciting venture. Add to this the large under explored areas and
    we look forward to aggressively pursuing development projects
    starting as soon as possible and continuing over many years."


    I Sandover
    DIRECTOR

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