Saracen to buy Bundarra project

Saracen Mineral Holdings has entered into an agreement to purchase the Bundarra gold project from Bligh Resources in an all-scrip deal worth $8.5 million.

Perth-based Saracen said the acquisition of the mine, located 30 kilometres south of its Thunderbox operations, would increase its mineral resources across its operations by about 5 per cent to 8.8 million ounces.

Managing director Raleigh Finlayson said the Bundarra acquisition was a sensible low-cost, bolt-on acquisition for Saracen.

“The financially robust open pit resources will immediately extend the mine life at the nearby Thunderbox mine, with high grade extensional results pointing to further growth,” he said.

Saracen shares closed 1.6 per cent higher to $1.26 each.