Frontier share price doubles on Gold Ridge buy
PERTH (miningweekly.com) – The share price of junior Frontier Resources doubled on Monday after the company announced that it would buy an 80% shareholding in the Gold Ridge mine, on the Solomon Islands.
Fellow-listed gold miner St Barbara earlier in May completed the divestment of the Gold Ridge project to Solomon Islands company Goldridge Community Investment for an undisclosed amount.
Operations at the Gold Ridge mine were suspended in April last year, owing to torrential rainfall and ensuing flooding. To date, St Barbara had been unable to resume production from the mine site owing to a number of reasons, including the presence of illegal miners at the site and infrastructure damage.
Frontier said on Monday that the consideration payable to Goldridge Community Investment for an 80% interest in the project was a 20% deferred carried interest into production, repayable for 50% of Goldridge Community Investment’s pro-rate share of future profits, as well as the issuance of 19.9% share equity in Frontier and the deferred issuance of 4.98% share equity in Frontier one year from the start of joint venture operations.
Frontier chairperson Peter McNeil said on Monday that Frontier would focus on bringing the Gold Ridge mine back into production as soon as possible, subject to a feasibility study.
“We will also commence exploration and resource infill drilling to attempt to demonstrate significantly enhanced total resources and reserves, targeting a larger and higher grade gold zone to enable a more robust and significantly longer-life mine.”
McNeil noted that there were a number of good near-mine drill targets available for further exploration.
The Gold Ridge mine includes a 2.5-million-tonne-a-year carbon-in-leach processing plant, and has a mineral resource of some 3.18-million ounces of gold, within 64.2-million tonnes of resource, grading 1.5 g/t gold. Total ore reserves had been estimated at 0.67-million ounces.
Frontier traded at a high of 1.1c a share on Monday, up from an opening price of 0.4c a share.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation