The Eureka gold project is approximately 50km North of Kalgoorlie and includes the Eureka open pit gold mine which is 100% owned and NI43-101 compliant. The Eureka gold mine is currently under care and maintenance.  CIO has re-focused the gold strategy and is actively working towards a greater tenement expansion in the Eureka region which will allow for regional and mine site exploration to commence. The Company‘s current tenement package is 563 hectares.

Project

Tenement

Status

Area (ha)

Eureka Gold

M24/189

Granted

218.15

Eureka Gold

M24/584

Granted

110.5

Eureka Gold

M24/585

Granted

104.5

Eureka Gold

M24/586

Granted

130

On December 05, 2011 CIO announced that it has entered into an agreement for the AUD$4 million sale of its Eureka Gold Project to Greenstone Minerals Pty Ltd (“Purchaser”). The transaction involves the Purchaser paying an AUD$150,000 deposit and a further AUD$3,850,000 in two tranches as follows:

Tranche 1: The Purchaser must pay CIO AUD$2,000,000 in cash on completion of the sale and purchase.

Tranche 2: On the date that is twelve months from the date of the Purchaser’s admission to the official list of the Australian Stock Exchange (“ASX”), the Purchaser must pay the following consideration to CIO:

  1. AUD$850,000 cash; and
  2. AUD$1,000,000 in cash or shares in the Purchaser, at the Purchaser’s election.

Completion of the sale of the Eureka Gold Project is conditional upon:

  1. The Purchaser obtaining a mandate agreement from a recognised and reputable Australian stockbroker to support, on a reasonable endeavours basis, an IPO on the ASX for a capital raising of at least AUD$10,000,000 by March 16, 2012;
  2. The Purchaser being admitted to the official list of the ASX on a conditional basis by April 30, 2012; and
  3. CIO obtaining any consents, approvals, authorisations or clearances which are required for the sale and purchase (including any required TSXV approvals) by April 30, 2012.

 

Eureka Gold Project Location    Eureka Gold Project Tenement Location

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