Saracen fulfilled the only condition to the Transaction being the consent from the Western Australian Minister for Finance, Aboriginal Affairs and Lands.
Image: Saracen has acquired 50% stake in Kalgoorlie Super Pit. Photo: courtesy of Adam Radosavljevic from Pixabay.
Saracen Mineral announced it has successfully completed the acquisition of a 50% interest in the Kalgoorlie Consolidated Gold Mines Joint Venture (KCGM JV) from Barrick Gold Corporation (Barrick) through the purchase of 100% of the shares in Barrick (Australia Pacific) for a price of US$750 million (the “Transaction”). The KCGM JV owns and operates the Super Pit gold mine in Kalgoorlie-Boulder, Western Australia.
As announced on 25 November 2019, Saracen fulfilled the only condition to the Transaction being the consent from the Western Australian Minister for Finance, Aboriginal Affairs and Lands. The Transaction was subsequently completed today on the terms outlined in Saracen’s ASX release on 18 November 2019 along with the draw down of A$400 million under the Company’s new A$450 million senior secured term loan.
Saracen Managing Director Raleigh Finlayson said the completion of the Super Pit acquisition marked a key milestone in Saracen’s growth strategy.
“The acquisition of a half-share of the Super Pit transforms Saracen into one of Australia’s leading gold producers,” Mr Finlayson said.
“We now have three long-life assets generating strong cash flow in a Tier-one location. Each asset also has outstanding exploration potential, providing scope to create further value for shareholders through organic growth.
“We are looking forward to partnering with Newmont Goldcorp, which has extensive knowledge of the Super Pit and vast experience in open-pit and underground operations.
“On behalf of Saracen, I would like to thank Barrick for its co-operation and support throughout the transaction.”
Source: Company Press Release