Canadian miner Alacer Gold has sold off its Australian gold mines to Australian company Metals X.
According to Alacer it will sell off its Australian Business Unit, which includes the Higginsville Operataions – which are the Trident and Chalice underground gold operations, as well as its 1.35mtpagold plant and associated plant and infrastructure; and Alacer’s South Kalgoorlie Operations, which consists of a 1.2mtpa gold plant and open pit and underground mining potential
The move is not a surprise, after the company foreshadowed the asset sale in June.
The then CEO of Alacer, David Quinlivan,said “Alacer has recently received confidential, non-binding expressions of interest from several parties interested in purchasing its Australian assets”.
“The sale of the Australian assets would enable the company to focus on its high margin operation and exploration activities at its world class Copler Mine in Turkey.”
It came after the company posted a large drop in profits for the first quarter of this year.
Following this Quinlivan stepped down from the company last month.
Australian miner Metals X has bought these assets for $40 million, and stated that it will “continue to operate both the Higginsville Operation and South Kalgoorlie project on a going concern basis with no halt to gold production”.
Metals X will take ownership of the operations on 1 October, and operate the mine though its Westgold subsidiary, which it acquired in May last year.
Speaking in a company statement Alacer’s new chief, Rodney Antal, said it is “pleased to have negotiated a sale to a Western Australian company that is familiar with our Australian assets”.
“Strategically, the sale of our Australian assets demonstrates [the aforementioned] commitment to focus on our Turkish operations.
“This sale will permit our senior management and the board to focus on creating value in Turkey and the surrounding region for Alacer’s shareholders.”
Metals X CEO Peter Cook stated that “the acquisition is a significant step in the growth of Metal X’s gold division”.
“The two operational production centres will provide immediate cash flow to the group and are a strong platform for the development of our pending Central Murchinson and Rover 1 gold projects.
“Our gold division now has a total resource inventory of more than 12.5 million ounces of gold with four key projects.”