Saracen Minerals has posted strong fourth quarter results, with cash and equivalents up to $82.9 million on December 31, 2017, up from $60.5 million on September 30, 2017.
Gold revenues were also strong, generating $118.9 million in revenue overall from 74,320 ounces. Half-year production figures were also positive, with a six-month production of 157,795 ounces of gold, ahead of the company’s full-year 300,000 ounce target.
Saracen is cementing its good fortune with a deal announced via the ASX today; the company is to acquire a 6 per cent stake in Nexus Minerals in return for Nexus’s acquisition of Saracen’s Wallbrook Gold project.
Nexus is to provide a 3.8 million share subscription to Saracen at a price of $0.084 a share, as well as 1,900,000 one-for-two attachment options totalling $320,000. Saracen is an existing joint venture partner with Saracen at the Pinnacles gold project in the Eastern Goldfields of Western Australia.
Andy Tudor, managing director of Nexus, said that he was pleased to secure a further deal with Saracen.
“Saracen’s extensive experience and technical expertise in the region will be invaluable to Nexus in our exploration efforts to make the next big gold discovery in the district,” he said.
Saracen’s managing director Raleigh Finlayson also commented saying that he was confident in Nexus’ “exploration talent and experience” given Saracen’s experiences with the company on their aforementioned Pinnacles joint venture.