13/03/2013 - 12:23

Apex cashed up after Wiluna mine sale

13/03/2013 - 12:23

Bookmark

Save articles for future reference.
Underground drilling operations at the Wiluna gold mine.

The Ed Eshuys-chaired Apex Minerals has solved its need for short-term capital to support its Wiluna gold mine, selling off the asset to a China-based investment house for $50 million.

The company announced it had entered a memorandum of understanding with China’s Everprosperity Investment Co which will see a formal sale agreement completed following completion of due diligence as well as receipt of shareholder and regulatory approvals.

Under the agreement, Everprosperity will purchase $500,000 worth of Apex Minerals shares as a non-refundable due diligence subscription.

“While Apex believes strongly in the potential of the Wiluna gold mine to be a significant long-term and profitable gold producer, the company believes the outright sale of the Wiluna gold mine is in the best interest of all shareholders,” the company said in a statement.

The agreement follows last month’s sale of the Youanmi gold project in the Murchison to private firm Infinity Fame Ltd for $15 million.

Apex launched a strategic review of operations in January to find ways to unlock shareholder value either through an asset sale or change of ownership.

The company said the sale of Youanmi and Wiluna were key outcomes of that review.

"With the signing of this MoU, the rationale for Apex to raise significant additional short-term capital to support the Wiluna gold mine has fallen away,” Apex said.

Apex Minerals shares have jumped 21.43 per cent since returning to trade this morning, trading at 5.1 cents at 12:11PM, WST.

The company’s shares were voluntary suspended from trade on March 5.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options