07/06/2019 - 10:12

Mincor to divest gold operations

07/06/2019 - 10:12

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Mincor Resources will bring a halt to its gold operations by September, having last month announced a capital raising to facilitate the restart of its Kambalda nickel project.

Mincor to divest gold operations
Mincor will cease mining operations at its Widgiemooltha gold operations by August 1.

Mincor Resources will bring a halt to its gold operations by September, having last month announced a capital raising to facilitate the restart of its Kambalda nickel project.

In a statement, Mincor said that due to its new focus on its nickel activities, it would implement a wind-down of mining operations at its Widgiemooltha gold operations by August 1.

Its toll treatment agreement with Westgold at its Higginsville Operations expires on June 30, and its short-term tolling agreement at the Lakewood processing facility in Kalgoorlie is set to conclude in September.

Mincor also released drilling results from its Cassini deposit.

Despite drilling the deposit for nickel, the company said the assay returned an outstanding, high-grade intercept of gold.

“Mincor believes there are substantial optimisation opportunities at Widgiemooltha for a focused gold company, while there are also significant resource extension and regional exploration opportunities, as demonstrated by the stand-out gold intersection reported at Cassini today, which is part of the greater Widgiemooltha Dome project area,” it said.

Sternship Advisers is providing advisory services and coordinating the gold divestment process in conjunction with Mincor’s management.

On May 24, Mincor announced it raised $18 million in a share placement and is seeking to secure an additional $5 million via a share purchase plan.

The funds raised are set to go towards the restart of its Kambalda nickel operations, which it said has become economically viable amid a rebounding nickel price.

Shares in Mincor in Mincor were up 2.44 per cent to trade at 42 cents each at 11.25am AEST.

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