Silver Lake sells Great Southern

Silver Lake Resources has sold its Great Southern gold project to ACH Minerals for $5 million in cash.

The Perth-based gold miner told the market today that ACH had exercised its option to wholly acquire the project, rather than earn-into the project over six years.

The two companies entered into a farm-in deal in December last year, with ACH being given the option to acquire up to an 80 per cent stake in Great Southern by spending $6 million over six years.

ACH was also granted the option to wholly acquire the project for a cash consideration of $5 million.

Silver Lake expects to receive the payment during the current quarter.

Managing director Luke Tonkin said the sale of Great Southern was a further step in the company’s strategy to realise value from its non-core assets and minimise its financial and management commitments outside of Silver Lake’s core Mount Monger operations.

Silver Lake shares were 1.5 per cent lower to 64.5 cents each at 11:45am.