Newcrest tightens focus with $42m divestment

Newcrest Mining is selling its Séguéla gold project in Côte d’Ivoire, West Africa, to Canadian miner Roxgold for $US30 million ($42.5 million).

Roxgold will pay Newcrest an initial cash sum of $US20 million followed by a deferred payment of $US10 million once it achieves first gold production.

The transaction is subject to approval from Côte d’Ivoire’s Minister of Mines Jean Claude Kouassi, as well as the renewal of Séguéla’s exploration permit.

Newcrest managing director and chief executive officer Sandeep Biswas said the deal would benefit the employees, local communities and Côte d’Ivoire, and thanked the staff of Séguéla for their hard work.

Roxgold believes Séguéla has near-term development potential due to its Antenna deposit, which hosts an inferred resource of 5.8 million tonnes at an average of 2.3 grams per tonne of gold, in addition to other satellite opportunities.

Once the acquisition is finalised, Séguéla will become Roxgold’s second major project after the Yaramoko gold mine in Burkina Faso, also in West Africa.

“Rarely does such a large and carefully assembled land package become available from one of the world’s leading gold producers and Séguéla is expected to materially increase Roxgold’s overall resource inventory, particularly after we bring the deposit up to National Instrument 43-101 standards later this year,” said Roxgold president and chief executive officer John Dorward.

Newcrest will still maintain a presence in Côte d’Ivoire post-sale through its 50 per cent exploration joint venture with Barrick Gold.

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