PERTH (miningweekly.com) – Gold miner Newcrest Mining has struck a deal with TSX-listed Roxgold to divest of its Séguéla project and regional exploration tenements, in Cote d’Ivoire, in a deal valued at $30-million.
“Following a strategic review, we are pleased to announce the sale of the Séguéla project to Roxgold. This outcome delivers value for Newcrest shareholders and provides what we believe to be the best way to maximise the potential of the asset for the benefit of our local employees, communities and Cote d’Ivoire,” said Newcrest MD and CEO Sandeep Biswas.
Under the agreement, Roxgold would pay Newcrest an upfront cash consideration of $20-million on completion of the transaction.
The company has agreed to a deferred payment of $10-million on the first gold production from the portfolio.
The project consists of highly prospective exploration permits covering 3 298 km2 with significant scope to build upon existing data and high-quality exploration work completed to date. Séguéla's Antenna deposit hosts a mineral resource containing an inferred resource of 5.8-million tonnes at 2.3 g/t gold for 430 000 oz.
“Roxgold is excited to acquire Séguéla and the related permits from Newcrest. This acquisition represents a meaningful addition to our growth pipeline, providing a key second asset, immediate additional resource upside and a large prospective land package all in an accretive transaction for Roxgold shareholders,” said Roxgold president and CEO John Dorward.
“Rarely does such a large and carefully assembled land package become available from one of the world's leading gold producers and Séguéla is expected to materially increase Roxgold's overall resource inventory.”
Dorward said that there was also substantial near-term exploration upside at the deposit, and regionally, with the opportunity to significantly advance the project in the near-term.