Gympie gold mine sold to Singapore company

SOLD: An underground drill rig goes to work at the Gympie gold mine.
SOLD: An underground drill rig goes to work at the Gympie gold mine. Contributed

FE LIMITED has signed a conditional term sheet to sell its Gympie Eldorado gold mine to a Singapore-based private Mining and Metals trading company for $250,000 in cash.

According to the Proactive Investors Australia website the company will receive a net smelter royalty on gold recovered from the mine and tailings as well as 10% of profits on any subsequent sale of freehold land.

It will also receive about $2.2 million from the release of environmental performance bonds after settlement occurs.

The sale covers mining leases that contain three tailings storage facilities covering about 22ha and associated remaining assets and infrastructure at the mine, which was closed in late 2008.

Completion of the transaction is conditional on the purchaser completing technical and legal due diligence.

Following completion of the transaction, the company intends to focus on near term exploration of the Mt Ida Iron Ore Project in the Yilgarn Iron Province of Western Australia, including first pass drilling to test outcropping mineralisation with a focus on direct shipping grade hematite targets.

Mt Ida is about 80km northwest of the operational railway at Menzies, which offers access to existing port facilities at Esperance.

Topics:  foreign investment gold mine mining

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