Canadian miner RNC Minerals has finalised its acquisition of the Higginsville gold operation from Westgold Resources.
Westgold announced in March it was selling the Western Australia-based Higginsville operation to RNC for $50 million, with payment to be split between $25 million on cash and $25 million in RNC shares (equivalent to around 56.9 million shares).
RNC intends to use the Higginsville operation’s mill to provide low-cost milling for its existing Beta Hunt gold mine, which is operated by subsidiary Salt Lake Mining in the Kambalda district of WA.
This strategy is expected to reduce milling costs in excess of C$15 ($16) a tonne, a reduction of 35 per cent.
RNC president and chief executive officer Mark Selby called it a “major step forward” for the company, which will now turn its focus to the rapid integration of the Beta Hunt mine and Higginsville mill.
“The combination of the Higginsville Mill and our Beta Hunt Mine will transform RNC’s gold operations in Western Australia into a multi-mine operation anchored by the 1.3 million tonne per annum Higginsville gold operation mill, the high-grade and bulk resource potential at Beta Hunt (which was once again confirmed last week), and a large land position in the Kalgoorlie gold region,” he said.
Higginsville boasts a historical 367,000-ounce reserve within 1.2 million ounce measured and indicated resources.