Norseman Gold, I.C.I. agreement

Press, Volume CXI, Issue 32789, 14 December 1971, Page 25

Norseman Gold, I.C.I. agreement

(N.Z.P.A.-Reuter—Copyright) PERTH, December 13. Norseman Gold Mines N.L.has reached agreement in principle for I.C.L Australia, Ltd, to share in the development of the company’s magnesite deposit at Ravensthorpe.

I The chairman of Norseman ■(Mr T. V. Antico) told the annual general meeting in 1 Perth that heads of agreement covering the development were now in the final draft stage. They provided for the joint venture to continue exploration, prove the reserves, and complete a detailed feasibility of the project

If the study confirmed initial estimates, then Mininip, a wholly-owned subsidiary of I.C.L, would meet most of the cost of exploration and development and installation of crushing and screening equipment. The estimated capital cost of the calcining plant was between ssm and s6m. It would be financed by loans and equity provided by I.C.L and Norseman. Under the agreement Norseman would retain control of the deposit and the joint venture would pay Norseman an incentive commission of 175 c a ton of magnesia produced. Mr Antico said that preliminary assessment of the return on funds to be invested by Norseman was very favourable and would b e reflected in the company’s future profits. Allied passes div.

The directors of Allied Concrete, Ltd, report that as a result of the current economic conditions, particularly those applicable to the construction industry, they have resolved not to pay an in'terim dividend.