Moho Resources Ltd (ASX:MOH) has received a $1 million completion payment, having completed the sale of the East Sampson Dam Gold Project to Mineral Mining Services Pty Ltd.
In early November, Moho announced that it had entered an agreement to sell East Sampson Dam to Mineral Mining Services for up to $4 million.
Under the sale agreement, Moho would receive initial payment of $1 million, to be followed by up to $3 million in deferred cash payments contingent on gold production milestones.
Under the sale agreement, Moho will receive $500,000 at 10,000 ounces produced and further identical payments at the 15,000-, 20,000- and 25,000-ounce milestones, with a final payment of $1 million at 30,000 ounces produced.
East Sampson Dam holds a mineral resource estimate of 246,000 tonnes at 2.5 g/t gold for 21,600 ounces of gold at a 0.5 g/t gold cut-off. The current resource only accounts for a portion of the project’s potential.
Moho also produced a conceptual exploration target within the current resource boundary of between 3,000 and 3,500 ounces of gold and estimates there is potential for 4,000 ounces of gold for every 20 metres of depth below the current resource.
Positioned to pursue new opportunities
The company also recently raised $793,000 through a share placement. Now with an improved balance sheet, Moho says it is now better positioned to pursue new project opportunities that will enhance returns for its shareholders.