Extract from VAN letter to shareholders
K2 Update. Shareholders will be aware that we have a Binding Term Sheet agreement with Dampier Gold (ASX: DAU) in respect of our K2 Gold Deposit within the Marymia Project. Our agreement with Dampier sets out that Dampier can contribute the lesser of 50% of the capital expenditure or $3 million to the development of a mine at the K2 Deposit, and the exploration for and mining of gold at K2 and its processing for the extraction of gold. By any reasonable commercial assessment, the capital expenditure required for development, exploration, mining and processing at the K2 underground mine will be in excess of $20 million. Whilst moving forward to develop K2 in the mid to longer term will benefit all parties concerned, Vango remains focussed on the much larger projects being opened up at Trident, Triple P and other potentially larger high priority target areas.
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