Tanami Gold NL announced that it has reached an agreement with ABM Resources NL to lease its Coyote Gold Processing Plant and associated infrastructure to ABM. The Plant is situated in the Western Tanami mining district in far north Western Australia. The agreement includes an option to purchase the Plant and associated infrastructure and the underlying mineral leases.

The Licence and Lease Agreement with ABM includes: From signing, ABM is contributing up to $150,000 per month to the care and maintenance costs until the lease commences. The lease term commences once the conditions precedent have been satisfied, which both companies anticipate will take approximately 3 months but the Agreement allows for up to 12 months. Once all the conditions precedent are met (or waived), ABM will take possession and commence management of Coyote and the infrastructure.

The Company will conduct re-commissioning including processing up to 10,000 tonnes of commissioning ore prior to making the first year's lease payment of $2 million. The initial 12 month period commences on commercial processing of ore following successful completion of commissioning. The lease is extendable for a second year for a further $2 million lease payment.

ABM has an option to purchase Coyote, the infrastructure and the underlying mining leases before the end of the lease for $3 million. The agreement does not cover the mineral rights relating to the Coyote Gold Mine, which are retained by Tanami, until ABM exercises its purchase option. ABM is responsible for maintaining and operating Coyote and the infrastructure and, unless ABM exercises the purchase option, will return Coyote and the infrastructure to Tanami in the same operating condition in which ABM received it.