TORONTO (miningweekly.com) – Vancouver-based New Gold has agreed to sell its Amapari mine and related assets in Brazil to Australia's Beadell Resources for $63-million in cash and shares.

Beadell is an ASX-listed, gold-focused company with exploration and development assets in Western Australia and Brazil.

The Amapari gold mine was halted in 2008, after the high costs of mining and processing the oxide ore rendered it uneconomic.

New Gold had since outlined a project that would cost about $150-million, for a 100 000-oz/y mine that would exploit the underlying sulphide resource at Amapari and remaining oxides and would include the construction of a new processing facility.

However, executive chairperson Randall Oliphant said in October that the company was talking to prospective buyers, and that it would make sense for a company with existing assets and infrastructure in Brazil to move the project forward.

New Gold will receive $46-million in cash and $17-million in Beadell shares, the firm said in statement.

The deal is dependent on Beadell completing a A$75-million equity offering.

"We are pleased with this transaction as it provides the company with meaningful cash proceeds while still participating in Amapari's future success as a Beadell shareholder," Oliphant said.

"New Gold views this as an opportunity to successfully monetise the Amapari asset which will provide the company further flexibility as it pursues other growth opportunities."

Beadell will need to get approval from at least 50% of shareholders for its equity offering, and plans to hold a vote in early March. Beadell management, who hold approximately 25% of the shares of the company, have committed to support the deal.

The Amapari sale is expected to close in March.

New Gold has operating mines in the US and Australia and development projects in Canada and Chile.

Shares in the company edged up 0,23% on Thursday, to C$4,41 apiece by 16:10 in Toronto.

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