On the 28th December Heemskirk Consolidated Limited and North Queensland Metals (NQM) executed a Sale and Purchase Agreement to buy the Pajingo Gold Mine from Newmont.

Heemskirk has taken a 40% interest and NQM a 60 % interest in the Joint Venture and NQM is operator of the project.

The project acquisition price was $25 million (Heemskirk's share - $10 million) and replacement of the existing environmental bond. As part of the acquisition price Heemskirk has issued 3 million shares to Newmont. Heemskirk has also taken an equity stake in NQM.

The Pajingo Gold Mine

Mining commenced in 1996 under Normandy Mining and from 2002 managed by Newmont USA following merger with Normandy Mining.

The Mine has produced over 2.3m ozs since 1996 at a grade of approximately 11 g/t Au.

The District

Pajingo is an epithermal gold system in a world class gold district with a number of historic and operating gold mines located within a 100km radius, including Kidston, Mt Leyshon, Yandan and Wirralie.

The district has produced over 10 million ounces of gold and significant base metal operations have also operated in the region.

Key Benefits of the transaction

830km2 of highly prospective exploration ground in world class epithermal gold area. All tenements are within 50km of the plant.

Gold production from an existing mine.

Excellent infrastructure, well established mine operation and data set.

Commodity and geographic diversification.

Operating asset in Australia as platform for future growth.

Australian cash flow.