JOHANNESBURG (miningweekly.com) – Perth-based Silver Lake Resources has entered into an agreement with a private consortium for a ten-month dry hire lease of the Murchison gold mill and associated infrastructure, MD Les Davis reported on Monday.
The lease would generate A$7.9-million for Silver Lake, which was hit with a A$48-million noncash impairment against its current assets in the financial year ended June 30.
Should the lease be extended for another nine months, Silver Lake stood to make another A$7.1-million and should the term be extended for 12-months, the company could bring in A$9.5-million.
Davis described the mill lease as a “mutually beneficial agreement” for Silver Lake and the lessee.
“During the term of the lease, Silver Lake will be assessing a number of strategic alternatives to further enhance the option value on the gold and base metals resources in Murchison,” he stated.
Silver Lake’s Murchison gold operations are on care and maintenance.