Gold Fields, the South African gold producer with significant operations in Australia, North America and Africa, is selling one of its flagship mines in a deal worth US$15 million.
The Darlot Mine, located north of Leonora in Western Australia, will be sold through a subsidiary in a deal containing AS$12 million in cash, and 130 million Red 5 shares.
Red 5 is an ASX listed emerging multi-operational mineral resource company, having agreed to acquire the Darlot Mine and Saracen Mineral Holdings’ King of the Hills Gold Project.
The King of the Hills project, located 65km south of Thunderbox, was acquired for a total of US$16 million earlier this week.
Red 5 – growing a footprint
The acquisitions will provide Red 5 with an extensive strategic footprint in the world-class Leonora-Leinster mineral district of WA, and present an opportunity to leverage this position by pursuing a regional consolidation strategy aimed at establishing the Darlot mill as a central processing hub.
The Red 5 group also owns the Siana Gold Project located on the island of Mindanao in the Philippines. The Siana Project is held under a Mineral Production Sharing Agreement (MPSA) by Greenstone Resources Corporation (a Red 5 Philippine affiliate company).
The Siana Project is currently on Care and Maintenance pending an improvement in operating conditions in the Philippines. The deposit is currently mined by open pit methods, transitioning to underground mining following completion of the open pit.
The Group’s second principal asset is the Mapawa MPSA, located 20km north of Siana, which has the potential to be developed as a satellite source of ore feed for the Siana processing plant. Mapawa hosts a known gold porphyry system with numerous high grade gold occurrences throughout the project area. The area has had little exploration activity and is considered to have significant potential.