11/12/2014 - 13:15

Silver Lake mill sale canned

11/12/2014 - 13:15

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Silver Lake Resources has cancelled the $5.5 million sale of its Lakewood Mill near Kalgoorlie, after the buyer was unable to secure financing.

Silver Lake mill sale canned
Silver Lake's Murchison Goldfield project.

Silver Lake Resources has cancelled the $5.5 million sale of its Lakewood Mill near Kalgoorlie, after the buyer was unable to secure financing.

The divestment was announced in October, with the undisclosed private consortium given six weeks to find financing and complete due diligence.

In the deal, Silver Lake would also have received a 2 per cent gross revenue royalty on production from two nearby mining licences.

A deposit of $500,000 was received by Silver Lake prior to the announcement.

The company said it would re-engage other parties interested in buying the asset, which is connected to its Mount Monger operations.

In the most recent financial year, Mount Monger produced just less than 30,000 ounces of gold.

In October, Silver Lake also leased its Murchison gold mill for a 10-month period as gold prices continued to fall.

That agreement was expected to provide cash of $7.9 million, with a possible 12-month, $9.5 million extension.

Silver Lake was down 4.4 per cent to 22 cents per share at the time of writing, less than half the company’s value at the start of July.

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