Saracen in $25m farm-in deal with AngloGold

Saracen Mineral Holdings has attracted AngloGold Ashanti for a farm-in agreement for its Carosue Dam North gold project near Kalgoorlie, valued at $25 million.

AngloGold can earn up to a 70 per cent stake in Perth-based Saracen’s Butcher Well and Lake Carey tenements over a six-year period by spending up to $25 million on exploration work.

AngloGold will project manager during the farm-in period, as part of the agreement.

“The agreement with a company of AngloGold’s standing and exploration track record reflects the quality of the Carosue Dam North tenements and supports Saracen’s strong belief in the potential of this world class district,” Saracen managing director Raleigh Finlayson said.

“We look forward to the start of the Carosue Dam North exploration program, which will add to the aggressive drilling activity already undertaken by Saracen as part of its current $42 million exploration budget.”

The Saracen tenements are located west of AngloGold's Sunrise Dam gold mine, and are complementary to its existing tenement package.

Saracen shares closed 4 per cent lower to $1.14 each.