Saracen finalises Super Pit takeover

Aerial shot of the Super Pit

Saracen Mineral Holdings is officially the owner of a 50 per cent interest in the Super Pit in Western Australia.

The gold producer completed its acquisition of a half ownership of the Kalgoorlie Consolidated Gold Mines (KCGM) joint venture (JV) by purchasing Barrick Gold’s shares for $US750 million ($1.11 billion).

Saracen fulfilled its only condition to purchase the half stake in the Super Pit, which was to receive consent from the Western Australian Minister for Finance, Aboriginal Affairs and Lands.

The transaction was completed with a drawdown of $400 million under Saracen’s new $450 million senior secured term loan.

Saracen managing director Raleigh Finlayson said completing the Super Pit acquisition marked a key milestone for the company’s growth strategy.

“The acquisition of a half-share of the Super Pit transforms Saracen into one of Australia’s leading gold producers,” Finlayson said.

“We now have three long-life assets generating strong cash flow in a tier-one location.

“Each asset also has outstanding exploration potential, providing scope to create further value for shareholders through organic growth.”

Finlayson said Saracen was looking forward to partnering with Newmont Goldcorp for the operations of the Super Pit, due to the latter’s extensive knowledge of the mine and experience in operating both open-pit and underground mines.

The Super Pit is the largest open pit gold mine in Australia, at 1.5 kilometres wide.

It produces around 800,000 ounces of gold a year. KCGM’s current life of mine plan sees gold processing at the Super Pit to last until at least 2034.

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