Southern Cross polishes off Manuka for year-end production
PERTH (miningweekly.com) – ASX-listed Southern Cross Goldfields was on track to produce the first silver at its newly acquired Manuka project, in New South Wales, by year-end.
Southern Cross on Thursday reported that it had completed the acquisition of the Manuka project, previously known as the Wonawinta silver project, from the now defunct Cobar Consolidated Resources.
The project, which has a resource of about 60-million ounces, was acquired for A$375 000.
The A$60-million project poured its first silver in 2012, but the orebody proved more complex than first thought, prompting Cobar to make adjustments to the processing plant, and which resulted in a A$28.5-million impairment for the company.
Southern Cross had previously said it would spend about A$2-million on plant upgrades to bring the project back to production by December.
Meanwhile, Southern Cross had also met the preconditions for accessing its A$60-million debt funding package provided by TrailStone Group. The first A$25-million drawdown was used to fund the Manuka acquisition and to replace A$5.8-million of existing bonds. It also funded the full repayment of the company’s A$5-million debt facility with RMB Australia Holdings.
“Southern Cross has emerged from this exercise in a much stronger financial position. We have funding in place and a clear pathway to develop our impressive suite of gold and silver projects,” said chairperson Jon Parker.
“Since acquiring Manuka, we’ve advanced our planning and development processes and are continuing to identify and assess potential opportunities to extract significant additional value.”
Production from the Manuka project was expected to support the development of the nearby Mt Boppy gold project, which would come on line in 2015.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...
VISIT SHOWROOM
Rittal is a world leading provider of top-quality integrated systems for enclosures, power distribution, climate control, IT infrastructure and...
VISIT SHOWROOM
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
