23/06/2017 - 14:29

Silver Lake sells Murchison assets to Westgold

23/06/2017 - 14:29

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Silver Lake Resources has announced the sale of its remaining interests in the Murchison region to Metals X spin-out Westgold Resources in a cash-and-shares deal worth $10 million.

Silver Lake sells Murchison assets to Westgold
Silver Lake is selling its Tuckabianna gold processing facility in the Murchison region.

Silver Lake Resources has announced the sale of its remaining interests in the Murchison region to Metals X spin-out Westgold Resources in a cash-and-shares deal worth $10 million.

Perth-based Silver Lake will sell its Tuckabianna gold processing facility and underlying mining tenure for $6 million in cash and 1.25 million shares (equal to $2.5 million).

It will also sell its 40 per cent stake in the Cue joint venture – which is expected to dilute to 20 per cent during the first quarter of FY18 – for $1.8 million.

The JV stake sale is subject to the venture’s partner, ASX-listed Musgrave Minerals, not exercising its pre-emptive right to purchase the stake on equal terms.

Musgrave has 30 days to act on its rights.

“Following completion, the company will have divested itself of all interests in the Murchison region,” Silver Lake said in a statement.

Westgold managing director Peter Cook said the acquisition of the Tuckabianna gold plant would provide a further 1.2 million tonnes per annum of plant capacity to its Central Murchison gold project, as well as significant optionality for growth in the area.

“We will now turn our hand to further optimisation of the development strategy utilising these newly acquired assets and resources,” Mr Cook said.

Silver Lake shares were 0.6 per cent lower to 46.7 cents each at the close, while Westgold shares were 2.3 per cent higher to $1.87 each.

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