Calidus Resources and Novo have reached a binding agreement to acquire mining leases and infrastructure of the Blue Spec gold-antimony project
Calidus Resources has agreed to acquire a part of Blue Spec gold-antimony project in the Pilbara region of Western Australia from Novo Resources for a cash consideration of A$19.5m ($12.5m).
The company has also signed a binding agreement to purchase the mining leases and infrastructure of the project, which is located 20km south-east of Nullagine.
It will pay about A$200,000 ($127,934) of non-refundable deposit within two business days and the remaining cash consideration will be paid by 30 November this year.
The Blue Spec project, which has a resource of 219,000 ounces at 16.3 grams per tonne of gold, provides potential to increase the production and mine-life of Calidus’s 100% owned Warrawoona gold project.
Blue Spec project’s deal is estimated to be completed within 60 days of signing the agreement
Calidus managing director Dave Reeves said: “The synergistic acquisition of Blue Spec will allow Calidus to look at increasing production using the planned Warrawoona infrastructure.
“By leveraging our planned sulphide plant and underground mining base at Warrawoona, we intend to undertake study work aiming to significantly reduce costs associated with mining and processing this very high-grade deposit, which has the potential to add significant production ounces to Calidus in future years.”
The acquisition is subject to the satisfaction of certain conditions that include Calidus arranging funding to pay the cash consideration, the execution of many deeds of assignment between the companies and relevant third parties along with customary regulatory approvals.
Additionally, the two companies are planning to conclude the transaction within 60 days of signing the agreement.
Furthermore, Novo is planning to utilise the proceeds obtained from the sale of Blue Spec project for advance expansion of its Beatons Creek deposit and explore other near-surface targets which it owns across the region.
In June this year, Calidus Resources has announced that the Western Australian Environmental Protection Authority (EPA) has recommended approval for the Warrawoona gold project located in the emerging Pilbara Goldfield of Western Australia.