Kalgoorlie-based explorer MacPhersons Reward Gold says it is looking at "near-term" production opportunities after acquiring a processing facility for ore from its namesake gold operations in Coolgardie.
MacPhersons announced in a statement to the ASX late Friday that it would acquire the mine, mill and minerals deposits of the Nimbus silver project from Reed Resources in cash and scrip deal worth approximately $5 million.
MacPhersons will pay $3 million cash, issue $1.5 million in shares, a one per cent royalty on zinc production from the two mining leases and reimburse Reed up to $500,000 for mill refurbishment costs.
The deal also includes a milling agreement option for Reed to process ore mined from its Sand Queen mine located north of Kalgoorlie.
The transaction remains subject to due diligence and formal documentation.
The Nimbus project comprises two mining leases located around 55 kilometres from the company's MacPhersons Reward gold mine in Coolgardie, and a processing plant that was placed on care and maintenance in 2007.
Exploration results indicate a zinc-polymetallic exploration target with a range of between 200,000 to 400,000 tonnes.
MacPhersons said the processing facility was currently undergoing an expansion including the installation of a gold processing circuit, which would allow it to process gold bearing ore from the Coolgardie mine.
It said it had been expanding its in-pit drilling at MacPhersons Reward with a view of looking at "near-term" production opportunities.
The company's stock has jumped this morning, up 8.3 per cent to trade at $0.32.
