22/10/2014 - 10:15

Silver Lake to sell Lakewood for $5m

22/10/2014 - 10:15

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Silver Lake Resources has entered into a binding heads of agreement with a private consortium for the sale of its Lakewood Mill near Kalgoorlie for $5.5 million.

Silver Lake to sell Lakewood for $5m
Silver Lake Resources managing director Les Davis. Photo: Attila Csaszar

Silver Lake Resources has entered into a binding heads of agreement with a private consortium for the sale of its Lakewood Mill near Kalgoorlie for $5.5 million.

As part of the deal, Silver Lake has also negotiated a 2 per cent gross revenue royalty on all minerals mined or recovered from two of its mining leases.

It has already received a $500,000 deposit for the mill.

Silver Lake flagged an expression of interest campaign for Lakewood in July, shortly after placing the mill on care and maintenance in July.

Just five months before that, Silver Lake halted open-pit mining and ore processing at its Murchison gold operation, both of which resulted in significant job losses.

The Murchison operation was put up for lease earlier in the month, under a binding agreement with a private consortium for a 10 month term.

It is not yet known if the same private consortium is involved in the sale of Lakewood Mill.

Silver Lake also recently announced a $42 million write-down of its non-current assets in August, which it attributed to “a reassessment of the value of its exploration and development assets” at its flagship Mount Monger operation.

The transaction is still subject to due diligence.

Silver Lake recently announced its founding managing director Les Davis would be stepping down from his role in November, leaving current executive director Luke Tonkin to fill his shoes.

Silver Lake shares were 1.45 per cent higher at 35 cents per share at 10:15am.

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