Barra Resources has offloaded its Birthday Gift underground mine near Coolgardie to privately-held Kalgoorlie-based mining firm Blue Tiger Mining, for $2 million in cash plus royalties on gold produced from the development.
The transaction is subject to Blue Tiger obtaining the Burbanks mining lease, with exclusive rights to the Birthday Gift workings and associated infrastructure.
Blue Tiger, which was established in 2000 by Kalgoorlie-Boulder local Noel Wemyss, will pay Barra a royalty of $25 per ounce of gold after the first 6,000 ounces of production at the mine, while Barra will retain exclusive rights to explore and mine gold from all the area outside of the Birthday Gift zone.
Barra said it would turn its attention to developing the Main Lode underground workings and target key acquisitions around the Coolgardie region.
“We will be targeting known gold bearing areas that require exploratory drilling to bring them up to production status,” Barra chairman Gary Berrell said in a statement.
At 1:15PM, WST, Barra’s stock was up 11.1 per cent, trading at 1 cent.