21/09/2011 - 10:14

Blackham mulls $15m Scaddan offer; acquires mines

21/09/2011 - 10:14

Bookmark

Upgrade your subscription to use this feature.
Blackham mulls $15m Scaddan offer; acquires mines

Blackham Resources says it is currently evaluating a $15 million cash and royalties offer for its 70 per cent stake in the Scaddan coal project, near Esperance, while at the same time announcing the $1.5 million-plus acquisition of two gold mines in the northern Goldfields.

Blackham said the interested party, which it declined to name, offered to pay $15 million cash and grant a $0.50 per tonne royalty to Blackham’s subsidiary, Scaddan Energy, in exchange for its stake in the Scaddan project.

The remaining stake in the project is owned by Wesfarmers Premier Coal.

The joint venture is determining the feasibility of the development of the Scaddan and neighbouring Zanthus energy project for the export of coal and the construction of a coal to liquid facility.

According to Blackham, the coal deposits total 1.4 billion tonnes, with the potential to produce 860 million barrels of oil equivalent, as well as additional power for the region.

Blackham said it had not accepted the offer, and is currently evaluating it and its obligations under the joint venture.

Any sale of its stake in the project would require shareholder, ministerial and foreign investment review board approval.

Also today, Blackham announced it had acquired an option to purchase 100 per cent of the Wiluna South and Williamson gold mines in the northern Goldfields.

Blackham said it signed a heads of agreement to acquire the private company that owns the mining license, exploration and prospecting licenses over the projects, Kimba Resources, in exchange for a phased $1.2 million cash payment, 2.4 million Blackham shares and a royalty of 1 per cent on nickel production profits.

Kimba is a private entity associated with Cazaly Resources directors Clive Jones and Nathan MacMahon.

The 500 square kilometre landholding subject to the agreement surrounds Apex Minerals’ operating Wiluna gold mine, and is within the Wiluna gold belt, which has produced over 4 million ounces of gold.

Managing director Bryan Dixon said no significant exploration had taken place on the tenements since Great Central Mines sold the Wiluna mine and surrounding package to Normandy in 2002.

“This agreement allows Blackham to gain the largest landholding in one of Weestern Australia’s major Archean greenstone belts that has produced over 4 million ounces of gold,” Mr Dixon said in a statement.

“The systems we are targeting have only limited shallow drilling and mining that took place when gold prices were a fraction of today’s gold price.

“Only one of the targets has had systematic exploration on it in the last 15 years.”

The agreement remains subject to Blackham’s due diligence of the projects.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options