PERTH (miningweekly.com) – Gold miner Southern Gold has received its third profit share distribution from operations at the Cannon gold mine in Western Australia.
Southern Gold on Tuesday reported that each of the joint venture partners at Cannon will receive A$2-million, taking total payments from the Cannon mine to date to $5.5-million each for Southern Gold and Westgold Resources.
Southern Gold told shareholders that the company will direct some A$1-million of this distribution to repaying its convertible debt facility over the next few days, allowing the miner to become debt free.
Westgold is managing operations at Cannon and is processing the ore at the South Kalgoorlie operations’ Jubilee plant, 35 km to the south-west of Cannon, under a 50:50 profit sharing arrangement with Southern Gold.
Assuming that the mine is taken to completion, Southern Gold expects to receive a further A$10-million distribution during the period to June 30.