JOHANNESBURG (miningweekly.com) – Perth-based Crescent Gold has doubled its gold inventory and exploration acreage in Western Australia, after signing an acquisition agreement with Barrick Gold and Carbon Energy, worth A$8-million.

The company is acquiring the Laverton exploration joint venture, containing the Chatterbox and Beasley Creek gold deposits, and a 100% interest in the Lancefield deposit.

The transaction would boost Crescent’s gold inventory to over 2,1-million ounces of measured, indicated and inferred resources, as the company maintained its drive to take advantage of the sector’s consolidation opportunities.

The purchase of the combined assets delivered an aggregate of 1,1-million ounces to Crescent, which represented a purchase price of over A$7/oz. The additional resources in the acquired tenements could provide a number of operational and development synergies to Crescent to deliver ore into the recently signed ore purchase agreement with Barrick.

The company stated that it would pay A$1-million in cash to each of Barrick and Carbon Energy on the signing of a formal sales and purchase agreement. Further payments would be made six months and 12 months after the signing of the formal agreement, through a combination of cash and the issue of ordinary shares in Crescent.

Further, if the total ounces produced by Crescent from the newly acquired assets exceed 75 000 oz, both Barrick and Carbon Energy would be paid a further A$1,5-million each, through a combination of cash and shares.

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