St Barbara to sell Southern Cross

St Barbara has agreed to sell its Southern Cross operations to Chinese miner Hanking Gold Mining.

According to St Barbara it ceased operations at the site in the December quarter last year and has since placed Southern Cross into care and maintenance.

The sale, which is valued at around $22.5 million includes not only the mine but also all the mine and related assets located at Southern Cross, which have a book value of around $10 million.

Part of the sale includes the assumption of the existing rehabilitation obligations applying to the tenements sold.
Subject to various third party and FIRB approvals, completion of the sale is expected to occur by late February/ early March this year.

The Southern Cross operations are located around 360km east of Perth, and based at the Marvel Loch underground mine.

Prior to its shutdown it produced 97 392 ounces of gold in the 2012 financial year.

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