Bendigo Mining has entered into an agreement with Barrick Australia to acquire 100% of the Henty Gold Mine, located on the West Coast of Tasmania.
The deal transforms Bendigo from a single mine company, with Henty becoming the Company’s second underground operating gold mine along with the Kangaroo Flat Mine in Bendigo.
Bendigo has agreed to pay Barrick a total consideration of $8 million plus royalties of up to $22 million arising from future production from exploration discoveries.
The non-royalty consideration comprises $5 million in cash and $3 million in Bendigo ordinary shares.
Bendigo will also assume Henty’s employee and environmental liabilities, and an existing royalty obligation.
The acquisition is planned to be finalised in early July, subject to the fulfillment of various third party agreements.