PERTH (miningweekly.com) – Junior gold miner Unity Mining has sold its Bendigo project, in Victoria, to fellow-listed GBM Gold.
Under the terms of the asset sale agreement, GBM would acquire the project for a A$100 000 cash signing fee and further repayments totaling A$5.63-million, which was equivalent to Unity’s environmental bonds over the Bendigo project.
The cash payments would be made between the completion of the transaction and the third anniversary of the transaction.
The Bendigo assets included the Kangaroo Flat gold plant, equipment and facilities, as well as mining and exploration tenements, buildings and freehold land in the Bendigo area.
Unity MD Andrew McIlwain said on Thursday that the transaction, which brought to an end Unity’s direct involvement with the project, would allow the gold miner to continue to focus its efforts on progressing the development of the Dargues gold mine, in New South Wales, and maximise the value of its Henty gold mine, in Tasmania.
“Importantly, the assets that GBM are acquiring in Bendigo have been well maintained and the environmental work done over recent years sees the facilities in good standing.
“Preliminary discussions with the Victorian regulatory authorities in relation to transfer of the mineral tenement reflect this,” McIlwain said.
GBM CEO John Harrison said the Bendigo acquisition was a significant step in securing the company’s future.
“The Bendigo gold project is multidimensional in nature and provides the company with several low-cost projects that will provide cash flow to fund exploration and potential development of Australia’s second-largest goldfield.
“This project is of a scale to potentially deliver significant value to shareholders.”