Oz Minerals sells off gold project

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Oz Minerals has made an agreement to sell its Cambodian gold assets to Renaissance Minerals for $17.8 million in cash, shares, and options.

In a statement yesterday the company said a further $22.5 million would be paid if Renaissance decided to establish a mine.

Oz Minerals CEO Terry Burgess said in a statement the company had decided to sell the assets after a review found they did not fit with its business plan.

"Oz Minerals sought to develop and operate a mid-tier gold mine in Cambodia and to this end took its Cambodian interests from a grassroots project to an identified gold resource," he said.

"However after review, we have concluded that this project does not fit within Oz Minerals strategy with regard to scale in relation to the commodity and our overall preference for mid-tier copper projects."

Oz Minerals has only one producing project and is under pressure to acquire or develop a new mine.

The company’s Prominent Hill mine in South Australia is due to end its life in 2018 and the replacement Carrapateena project may not be ready before then.

Last week Oz Minerals reported a 53 per cent drop in net profit but said the loss was exaggerated by one-off charges and it was still optimistic on its outlook.

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