Australian gold producer Doray Minerals has completed an agreement with Lewer Corporation (Lewar) to sell the entire production of copper-gold Middlings product from the Deflector Mine in Western Australia.
Under the contract, the sold copper-gold material will be shipped to Germany in two batches for sampling, assay and payment.
The first shipment has already been loaded and scheduled to leave Fremantle port tomorrow. The ship is scheduled to reach Hamburg, Germany in late-April after sailing for nearly five weeks.
Doray expects to receive the first provisional payment of A$10.75m ($8.15m) by 24 March.
Shipment of the second and final remaining smaller batch of the material currently still being produced on site is expected before the end of May 2017.
Under the contract, the final sampling process of the two shipments will be conducted in Germany after the cargo arrives.
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Following completion of sampling, Doray will receive the final payment to reconcile with agreed weights, grades and average prices of the contained gold.
Doray Minerals stated that exact contractual terms have not been released due to commercial sensitivity.
However, it expects to receive most payments for the sold products by 30 June.
Doray Minerals have two Western Australian gold projects – the Andy Well Gold Project that started operating in August 2013, and the Deflector Gold Project that began production in May last year.
Doray acquired the Deflector Gold Project from Mutiny Gold.
This gold-copper project is located in the southern Murchison region, 450km north of Perth and 350km from Andy Well.
Carrying an initial mine-life of six years, Deflector Gold Project exhibits similar characteristics to Andy Well. It is a shallow, narrow vein, high-grade deposit, which is mined primarily using underground methods.