PERTH (miningweekly.com) – ASX-listed Matsa Resources has finalised and settled the acquisition of the Red October gold mine, in Western Australia, from fellow-listed gold miner Saracen Mineral Holdings.
The two companies in September agreed to the sale, under which Matsa acquired the Red October project for A$1-million in cash and 4.545-million in shares, giving Saracen a 3.04% stake in Matsa.
Three tenements that were part of the original asset sale and purchase agreement have not been able to be transferred at this time, and Matsa told shareholders that the company would be withholding A$450 000 until the matter could be resolved.
The tenements are at the southern end of the Red October project, and will not have any impact on Matsa’s operations.
“The acquisition of the Red October gold mine has now been completed and we are truly excited about our prospects at Red October,” said Matsa executive chairperson Paul Poli.
“We have already gotten on with the job of assessing the potential to restart mining at Red October and expect to give shareholders an update on how near to recommencement of production we could soon be.”
The Red October mine has an historical production of 342 000 oz gold at an average grade of 6.1 g/t, and includes 64 km2 of granted mining tenements and a Joint Ore Reserves Committee-compliant resource of 99 000 oz, which would result in the Matsa gold resource increasing to 453 000 oz.