Saracen Mineral Holdings has entered into an agreement to acquire the Bundarra gold project in Western Australia from Bligh Resources Limited.
Bundarra is located 30km south of Saracen’s Thunderbox project, and adjacent to the sealed Goldfields Highway. The project was initially mined between 2000 and 2002 by Sons of Gwalia, producing 1.7Mt @ 2.2g/t for 115koz gold.
The acquisition increases the Mineral Resources within economic trucking distance of Saracen’s Thunderbox and Carosue Dam plants by approximately 5% to 8.8Moz.
Managing Director Raleigh Finlayson said Bundarra is a sensible low cost bolt-on acquisition for Saracen.
“The financially robust open pit Resources will immediately extend the mine life at the nearby Thunderbox mine, with high grade extensional results pointing to further growth.” Mr Finlayson said.
Project Key Points
- Consideration for the acquisition of 100% of the project is $8.5m in Saracen shares
- The transaction includes Mineral Resources* of 7.0Mt @ 1.9g/t for 431koz which equates to less than $20 / per Resource ounce
- The Transaction is conditional upon Bligh Resources and Saracen entering into a formal sale and purchase agreement
- Completion will be subject to the usual conditions precedent for this type of transaction including Saracen having the right to withdraw if its share price decreases by greater than 15% prior to the execution of the SPA and the requirement for Bligh shareholders to approve the Transaction at a general meeting
- The acquisition is consistent with Saracen’s ten year mine life target at Thunderbox, and is accretive on a Resource ounce per share basis
Saracen intends to rapidly:
- Progress the project into Reserve status
- Follow-up recent high grade extensional drill intersections below the Resource (including 10m @ 8.7g/t and 31m @ 3.6g/t)
