GBM Gold to acquire Unity Mining’s Kangaroo Flat mine

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Image credit: Unity Mining website

GBM Gold has inked a binding deal with Unity Mining to acquire the Kangaroo Flat mine near Bendigo in a deal worth $A5.7 million.

Image credit: Unity Mining website
Image credit: Unity Mining website

“The Agreement provides Unity with a $100,000 signing fee (which has been received) with further payments totalling $5.63 million (representing an amount equivalent to Unity’s environmental bonds in relation the Bendigo project) payable in instalments between completion and the third anniversary of completion,” Unity said in an ASX Announcement.

The transaction is expected to complete by 31 October 2015, subject to certain conditions.

“The transaction brings to an end Unity’s direct involvement with the Bendigo project and will allow the company to continue to focus its efforts in progressing the development of the Dargues Gold Mine project in NSW, and on maximising the value of its Henty Gold Mine in Tasmania, where the current $5 million exploration program funded by PYBAR Group is in full swing,” said Andrew McIlwain, Managing Director of Unity.

Adertisement

“Importantly the assets that GBM are acquiring in Bendigo have been well maintained and the environmental work done over the recent years sees the facilities in good standing. Preliminary discussions with the Victorian regulatory authorities in relation to transfer of the mineral tenements reflect this.”

GBM Gold is a central Victorian based gold company focused on the Central Victorian Goldfields.

Unity Mining owns and operates the Henty Gold Mine on the West Coast of Tasmania and is developing the Dargues Gold Mine in New South Wales.