An emerging mid-tier gold producer in Australia has sold one of its mining properties in Victoria, as the company looks to focus on low-cost high-grade core assets.
Kirkland Lake Gold, which has operations across Australia and Canada, announced that it has entered into a sale agreement with Arete Capital Partners to sell its outstanding common shares art its Stawell Gold Mines Pty Ltd, which contains the Stawell Gold Mine in Victoria, Australia.
The company will receive $6.25 million in cash consideration, as well as maintaining a 2.5% net smelter return on the mine.
Tony Makuch, President and CEO, Kirkland Lake Gold, commented: “This transaction is consistent with our long-term strategy to focus on our low-cost, high-grade core assets while simultaneously providing Kirkland Lake Gold with continued exposure to the project through the NSR. We believe the management team at Arete is well positioned to optimize the operational potential of Stawell in a sustainable manner to create value. I would like to thank the entire team at Stawell for their dedication and commitment over the years along with the strong support received from the local Victorian Government in Australia.”
Kirkland Lake Gold looks set to reach its 2017 target production of 580,000 to 595,000 ounces from mines in Canada and Australia, including the Macassa Mine located in northeastern Ontario and the Fosterville Mine located in the state of Victoria, Australia