Resource Base strikes gold processing deal to keep its spot on the ASX
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Gold tiddler Resource Base has managed to pin down a gold processing deal to help it stay listed on the ASX.
The company (ASX:RBX) inked an MoU with International Base Metals, which owns the Adelong Challenger gold mine in New South Wales.
Last week the ASX suspended the company from trading indefinitely because the market operator didn’t consider its operations adequate to justify remaining listed.
Resource Base had been assessing its options for using the existing processing plant at its NSW Broula King project to process other people’s gold.
The two companies see an opportunity to restart both the Adelong Challenger mine and the Broula King gold processing plant in the current buoyant gold market, Resource Base told investors.
The Australian dollar gold price is again heading north and is trading at about $1690 per ounce.
Under the deal, previously mined material would be trucked from the Adelong Challenger mine to the Broula King plant for processing.
Resource Base expects the deal to be formalised in the first quarter of next year.
In the past year, Resource Base’s share price has traded between 2c and 4c. It was suspended at 3.4c.
The company had just $62,000 in cash and $900,000 in debt at the end of the September quarter, and expected to spend $150,000 on admin and corporate costs alone in the December quarter.
Resource Base has been contacted for comment.