Crescent, Carbon Energy in $4m gold deal

Carbon Energy will sell its gold interests in the Laverton area to Subiaco-based Crescent Gold for a total of $4 million.

The sale reflects Carbon Energy's decision to focus on underground coal gasification projects.

Under the deal, Crescent will acquire Carbon's 50 per cent interest in the Laverton joint venture with Barrick Gold, the 100 per cent interest in the historic Lancefield mine and various exploration tenements.

Total consideration is $2.5 million cash with a further payment of $1.5 million to be made once gold production has exceeded 75,000 ounces.

Meantime, Carbon will spin off its uranium interests into a separate entity that will be floated on the local stock exchange by the end of the year.