logo-loader
MiningGold & silver
viewAustral Gold Limited

Austral Gold acquires interest in Chilean mining services provider

au_chile__350_538d289c90d40.jpg

Austral Gold (ASX:AGD) has acquired a controlling 51% stake in Chilean mining services provider Humberto Reyes Arriendo de Maquinarias SpA (Humberto Reyes) for US$2.7 million.

Humberto Reyes has been undertaking underground contract mining at the company’s Guanaco mine since 2011.

It owns mining equipment and associated vehicles with a book value of US$4 million.

The transaction is expected to deliver important annualised savings to the Guanaco mine, which produces over 4,000 gold equivalent ounces per month.

It also provides flexibility to accelerate mining of the Guanaco mine resource; allows greater control over safety and production practices at the Guanaco mine; ensures a continued competitive cost for future underground development; and grants greater control over the Guanaco mine operations.

Austral will make an initial upfront payment of US$450,000 and the remainder in monthly cash instalments over three years from existing cash reserves.

It also has an option to acquire the remaining 49% in 2.5 years at a price to be agreed upon by both parties.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Quick facts: Austral Gold Limited

Price: 0.073 AUD

ASX:AGD
Market: ASX
Market Cap: $40.84 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Tlou Energy's Tony Gilby updates on Lesedi production ahead of site visit...

Tlou Energy Limited’s (LON:TLOU) Tony Gilby speaks to Proactive London's Andrew Scott ahead a site visit next week. He says they've made an excellent start to flow testing at its Botswana coal bed methane wells. Gilby adds that, like most new CBM wells, the Lesedi operation is expected to...

20 minutes ago

2 min read