Westgold Resources has completed its acquisition of Australian Contract Mining (ACM), one of the largest privately owned underground mining contractors in Australia.
Under the acquisition, Westgold acquired all of the shares in ACM for $2.5 million plus 14 million fully paid ordinary Westgold shares.
The acquisition comes after Westgold’s successful commissioning of its fourth gold operation, with the company now focussed on lowering its cost of mining and making its gold projects more flexible and efficient.
By becoming owner operator, the company said it will reduce the contractor margin and increase the flexibility in its mining plans.
Westgold will integrate ACM with its existing internal open pit mining fleets and operate as an internal diversified mining services division. ACM will service its operations and will conduct third party contracting if opportunities arise.
ACM founder Brian Rodan will continue as CEO of the subsidiary and will join the executive management of Westgold.