Kingwest buys gold projects for $8m

Intermin Resources has reached an agreement to sell its Menzies and Goongarrie gold projects for a cash-and-scrip consideration of $8 million.

Under the agreement, Kingwest Resources will pay $3.375 million in cash and $4.625 million in shares for 38 mining, prospecting and exploration licences with a current JORC resource of 195,000 ounces.

As a result, Intermin will become a substantial shareholder in Kingwest with board representation in a non-executive capacity.

The transaction is subject to Kingwest completing a $4 million capital raising.

The projects are located between 80 kilometres and 130km north of Kalgoorlie-Boulder.

Intermin managing director Jonathan Price said the company was focused on developing a standalone gold project in the Kalgoorlie and Coolgardie regions.

“This divestment supports this objective while retaining exposure to both Menzies/Goongarrie and Kingwest’s current gold projects in the north-eastern Goldfields,” he said.

“The deal is another step in Intermin’s strategy of monetising assets through mine development or generating value through the divestment of lower priority projects to support future growth plans and minimising shareholder dilution wherever possible.”

In February, Intermin signed a five-month exclusivity deed with Focus Minerals to potentially acquire its Coolgardie gold project for $40 million over 3.5 years.

Earlier this month, Intermin and Focus extended the deed by three months to finalise documents and approvals for a transaction.

Also today, Accelerate Resources executed a sale agreement to offload its Bulgera gold project to Norwest Minerals for $220,000.

Shares in Intermin were flat at 11 cents each at noon AEST.