9 Jul 2018 15:20
9 July 2018
Crusader Resources Limited
("Company" or "Crusader")
Posse Update
As previously disclosed, Crusader entered into a sale agreement to divest its 100% interest in the Posse Iron Ore Mine ("Posse") to Inter Invest B.P. S/A on 28 July 2017 via an SPV CNS Empreendimentos Em Transportes E Minerios Eireli (together, the "'Buying Company").
Under the agreement, a consideration of R$8m was to be paid by an initial payment of R$1m with the balance payable in 15 equal monthly instalments until November 2018. The Company has received approximately R$1m to date.
As previously announced, and notwithstanding positive negotiations with the Buying Company to bring forward the payment of the total consideration, these discussions have not resulted in agreement.
Accordingly, Crusader commenced legal proceedings on 19 June 2018 through the courts regarding the payment of the amounts owed and the obligations of the Buying Company. These requests include an injunction for the suspension of activities at Posse until payment is made in full of the amount agreed upon, as well as the payment of a daily fine if there is no suspension of activities. Under Brazilian law, and before restitution occurs, both parties will initially be attempting to achieve a satisfactory outcome through a conciliation hearing.
The total debt outstanding is R$7m (US$1.8m) and the Company is pursuing a claim of R$14.5m (US$3.7m), which includes fines, interest and penalties.
The Company will release further announcements in accordance with its disclosure obligations as the claim progresses.
Mr. Paul Stephen | Investor Relations |
Executive Director | Office (Aus): +61 8 9320 7500 |
Office (Aus): +61 8 9320 7500 | Email: admin@crusaderresources.com |
Email: paul@crusaderresources.com | |
Smith & Williamson Corporate Finance Limited | Camarco |
Nominated Adviser | Financial PR |
Azhic Basirov/Katy Birkin/Ben Jeynes | Gordon Poole / Nick Hennis |
+44(0)207 131 4000 | +44(0)20 3757 4997 / +44(0)20 3781 8330 |
Hannam & Partners Joint Broker | |
Neil Passmore / Andrew Chubb/Ernie Bell | |
+44 (0)20 7907 8500 |
About Crusader
Crusader Resources Limited (ASX:CAS, AIM:CAS) is a minerals exploration and development company listed on the Australian Securities Exchange and the AIM Market of the London Stock Exchange. Its major focus is Brazil; a country Crusader believes is vastly underexplored and which offers high potential for the discovery of world class mineral deposits.
Crusader has two key gold assets;
Borborema Gold Project
The Borborema Gold Project is in the Seridó area of the Borborema province in north-eastern Brazil. It is 100% owned by Crusader and consists of three mining leases covering a total area of 29 km2 including freehold title over the main prospect area.
The Borborema Gold Project benefits from a favourable taxation regime, existing on-site facilities and excellent infrastructure such as buildings, grid power, water, sealed roads and is close to major cities and regional centres. The project's Ore Reserve includes Proven and Probable Ore Reserves of 1.61Moz of mineable gold from 42.4Mt @ 1.18g/t (0.4 & 0.5g/t cut-offs for oxide & fresh). The measured, indicated and inferred Mineral Resource Estimate of 2.43Moz @ 1.10g/t gold, remains open in all directions.
Juruena Gold Project
The Juruena Gold Project is located in the highly prospective Juruena-Alta Floresta Gold Belt, which stretches east-west for >400km and has historically produced more than 7Moz of gold from 40 known gold deposits. Historically there is a database of more than 30,000 meters of drilling and extensive geological data.
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.