Musgrave decision on Murchison gold project pending

Musgrave Minerals is considering whether to purchase joint venture (JV) interest from the sale of assets in the Murchison gold project, in Western Australia.

Silver Lake Resources has agreed the sale of Murchison Assets to a wholly owned subsidiary of Westgold Resources for around $10 million – and Musgrave has 30 days to exercise its pre-emptive right to purchase Silver Lake’s 40 per cent interest in the Cue Joint Venture.

The deal includes the site’s Tuckabianna Assets gold processing facility and underlying mining tenure as well as JV interest, which is expected to dilute to 20 per cent in the first quarter of the 2018 financial year.

The purchase price payable to Tuckabianna Assets includes $6 million in cash and 1.25 million fully paid shares in Westgold while the price for the JV interest is being considered at around $1.5 million.

Completion of this part of the sale is expected to come by early August.