PERTH (miningweekly.com) – Gold miner Kingsgate Consolidated has completed the sale of its Challenger gold mine, in South Australia, to a joint venture between Diversified Minerals and WPG Resources.
The parties in October of last year entered into an option agreement that would allow the JV partners to acquire the Challenger mine for A$1-million, as well as a A$25/oz royalty on the Challenger south south west zone, which would take effect after the first 30 000 oz of production.
Kingsgate finalised mining at the Challenger operation at the tail-end of February, with the mine entering into temporary care and maintenance.
The mine was expected to resume gold production before the end of June, subject to the approval of the new mine plan.