Hanking Australia has made a non-binding indicative cash offer of between $56 million and $65 million to acquire the Coolgardie gold project in Western Australia from Focus Minerals.
The deal consists of an upfront payment of $12 million and the balance to be paid in tranches over 3.5 years.
In response, Focus has rejected the offer from Hanking in preference of the company’s existing exclusivity deed with Horizon Minerals, due to greater execution certainty and due diligence it has already completed.
Horizon has previously increased its offer to $55 million after a $40 million offer for the site from Intermin Resources.
The Horizon deal comprises $12 million in fully paid ordinary shares and $43 million in cash, payable in tranches.
Hanking has showed interest in the Coolgardie project as it is adjacent to the company’s McPherson’s gold project, with synergies expected between the projects.
Coolgardie includes approximately 235 square kilometres of mining and exploration tenements, and a gold processing plant with an annual processing capacity of 1.2 million tonnes of ore.
The project was in gold production until August 2013 when it was put on care and maintenance.
Coolgardie contains approximately 2.1 million ounces of gold in reserves, with both mineable open pit and underground deposits.