PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings’ buy of a 50% interest in the Kalgoorlie Super Pit has become unconditional, after the state government approved the transaction.

Saracen last week struck an agreement with North American gold miner Barrick Gold to acquire its share in the Super Pit mine for $750-million.

The company last week also completed the institutional placement and the institutional component of its entitlement offer as part of a A$796-million capital raise to fund this transaction.

Saracen on Monday told shareholders that it had entered into additional gold hedges of 200 000 oz of gold, at an average price of A$2 187/oz, with scheduled deliveries out until the December quarter of 2022.

The new hedging takes advantage of the current strong gold price and provided Saracen with further financial certainty, while repaying the A$400-million depth used to help fund the purchase of the 50% stake in the Super Pit, said MD Raleigh Finlayson.

“The acquisition of a half-share in the Super Pit gives Saracen an asset with more than ten years life based on existing reserves alone, with a pipeline of further growth opportunities underpinned by additional resources and outstanding exploration upside,” he said.

“The latest hedges ensure that we maintain strong financial certainty while we repay the money we have borrowed to help drive this exceptional growth rate and the expansion of our overall gold inventory in a tier one location.”

The acquisition would establish Saracen as one of Australia’s largest gold producers, with three mines in close proximity to Kalgoorlie, producing more than 600 000 oz/y, with a combined reserve of more than seven-million ounces underpinning a group mine life of more than ten years.

With the acquisition now becoming unconditional, Saracen is targeting a completion date of November 29.