www.crescentgold.com
Crescent Gold Limited (ASX: CRE, TSE: CRA) is a top 10 listed Australian gold producer and explorer based in Perth, Western Australia. With a primary focus on gold development and mining, the Company is actively advancing its flagship asset, the Laverton Gold Project located 250km north east of Kalgoorlie in Western Australia with current annual production of 100,000-120,000 ounces.
Crescent maintains a dominant land position of over 1,200km2 of highly prospective tenements in a world recognised and well endowed mineralised geological domain. Crescent has a plan to carry on building its presence in the Laverton district, continue exploration and development to grow its reserve/resource base, and further leverage its production base to grow reserves, production, cash flow and earnings.
Crescent Gold a catalyst in regional consolidation with new gold deals
Crescent Gold (ASX: CRE) has signalled its intent to be a catalyst for regional consolidation with two new agreements.
The company has effectively doubled its gold inventory and expanded its exploration acreage in the key Laverton province of Western Australia after signing an agreement to acquire assets from Barrick and Carbon Energy (ASX: CNX) for A$5 million.
The deals will boost Crescent’s gold inventory to over 2.1 million ounces of Measured, Indicated and Inferred Resources.
It also positions Crescent as a prime mover in consolidation of gold deposits in the region.
The Barrick and Carbon Energy acquisitions include the Laverton Exploration Joint Venture (LEJV) containing the Chatterbox and Beasley Creek gold deposits and a 100% interest in the Lancefield deposit.
Crescent will pay A$1 million in cash to each of Barrick and CNX on signing of the formal sale and purchase agreement.
Further payments to both parties totalling A$3 million will be made six months and 12 months after signing of the formal agreement, via a combination of cash and the issue of ordinary shares in Crescent.
In addition, if total ounces produced by Crescent from the newly acquired assets exceeds 75,000 ounces, both Barrick and CNX will be paid a further A$1.5 million each through a combination of cash and shares to be negotiated.
The purchase of the combined assets delivers an aggregate of 1.1 million wholly owned ounces (including 510,400 resource ounces contained in shallow oxide deposits) to Crescent.
In terms of relative cost, it represents a purchase price of just over A$4.50 per resource ounce. The additional extensive resources in the acquired tenements could provide a number of operational and development synergies to Crescent to deliver ore into the recently signed Ore Purchase Agreement (OPA) with Barrick.
Along with the substantial increase to the existing Crescent gold resource base of 1.0 million ounces, the acquisition expands the Company combined JORC compliant resource base of Crescent to more than 2.1 million ounces.
Chairman Roland Hill said the acquisition offers substantial exploration upside for resource addition with the amalgamation of numerous contiguous exploration projects and tenements simplifying ownership and management over a number of project areas.
