Business
Pre-Payment Agreement with Norton Gold Fields
Pre-Payment Agreement with Norton Gold Fields.
About this update from Keras Resources Plc
[{"type":"text","content":"\n \nRNS Number : 0948Z Keras Resources PLC 24 May 2016 \n\nKeras Resources plc / Index: AIM / Epic: KRS / Sector: Mining\n24 May 2016\nKeras Resources plc ('Keras' or 'the Company')\nPre-Payment Agreement with Norton Gold Fields\n \nKeras Resources plc, the Australian gold mining company, is pleased to announce that it has entered into a Pre-Payment Agreement ('Agreement') with Norton Gold Fields Ltd ('Norton') on all gold ore delivered to the Paddington Mill owned by Norton's subsidiary Paddington Gold Pty Ltd ('PGPL').\n \nHighlights\n \n· Agreement will expedite 80% of payment to Keras; and \n· Gold content will be calculated from hauled run-of-mine ('ROM') tonnes at an average grade based on assay results from the sample crushing plant at the Paddington Mill assuming a 5% moisture content factor and a nominal 90% metallurgical recovery. \n \nKeras Managing Director, Dave Reeves said, \"We are pleased to announce the conclusion of our positive discussions regarding the Pre-Payment Agreement with Norton. Under our agreement with Norton, we are due payment within 42 days which was agreed to allow for all lab testwork on moisture content, recoveries and grade to be completed. This is a very complex and subsequently time consuming process that has been fine-tuned by Norton with its tolling participants since the signing of our tribute agreement. A slightly simplified flowsheet has been developed that will assist in reducing overall time to return this data, however, the 42 day payment would still be challenging to achieve. Working capital requirements in a growth company like Keras can create significant headwinds when trying to bring new production on line and the 80% payment within a short period of time from ore delivery will be a significant boost to Keras's cash flow. As a result of this Agreement, I am pleased to report that the first pre-payment on our first batch of ore is currently being processed. Due to the unavailability of the sample plant, pre-payment for the second batch is anticipated to occur in the first 2 weeks of June under the new regime. Final reconciled production will be reported quarterly.\"\n \nUnder the terms of the Agreement, ore from Keras will be stockpiled on the Paddington ROM pad as per the previous a...