Monday, 21st March 2005 (2781 views)

St Barbara Mines has acquired the gold division of Sons of Gwalia in a new $38 million deal.

St Barbara provided a cash payment of $2.3 million, guaranteed environmental performance bonds of $30 million and additional performance bonds of up to $5.7 million.

The company will own the division from March 28th this year.

Under the deal St Barbara will acquire 10,000 km2 of land in western Australia, which in turn consists of four processing plants.

Production at the sites over the last eight years has averaged 400,000 ounces a year.

The firm believes that as well as the predicted gold production, it believes there is considerable exploration potential across the sites.

New gold exploration will focus on the Leonara region, South Laverton region and the Southern Cross region.

 

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