Dalgaranga Joint Venture

Acquisition of 20% JV Interest by Gascoyne Resources

January 2017

Under the terms of the joint venture agreement governing the Dalgaranga gold project, 20% JV partner Jaime McDowell had 20 business days following completion of a Definitive Feasibility Study (“DFS”) by 80% JV partner Gascoyne Resources Limited (“Gascoyne”) to decide whether to continue to participate in the JV and contribute pro-rata his share of capital, or convert his JV interest into a 2% NSR royalty. Gascoyne released a DFS for Dalgaranga on 25 November 2016.

On 22 December 2016, Gascoyne announced that it had reached agreement to acquire Jaime McDowell’s 20% JV interest. Transaction consideration comprised $4.5m and 11.0m Gascoyne ordinary shares (with a value at closing of ~$5.8m) upfront, and a deferred payment of $1.5m payable upon production of 30,000 ozs from the project.

Azure acted as financial adviser to Jaime McDowell on the transaction.