GBM GOLD SELLS KANGAROO FLAT GOLD PROCESSING PLANT FOR $6.2 MILLION
GBM Gold Ltd has entered into an agreement to sell the Kangaroo Flat Gold Processing Plant for $6.2 million. Australian Mining Equipment Exporters Pty Ltd have purchased the plant for export to a project in Guinea, West Africa. The plant will be exported in the second or third quarters of 2018. The funds received will increase working capital and be used to pay down debt.
GBM Gold Limited has entered into an agreement with Australian Mineral Exporters Pty Ltd for the sale of the Kangaroo Flat Gold Processing Plant for $6.2 million with the following payment schedule:
|Date||Payment to GBM|
|27 July 2017||$1,450,000|
|1 December 2017||$2,400,000|
|30 January 2018||$2,300,000|
|30 June 2018||$50,000|
The plan is to relocate the plant to Guinea in the second or third quarter of 2018.
As part of the contract to purchase the Bendigo Goldfield, Unity Mining Limited assigned to GBM Gold the funds held to meet rehabilitation obligations at Bendigo ($5.93 million). These funds will be repaid over three years.
As announced on 18 May 2016, Unity and GBM Gold agreed that should GBM Gold sell the Kangaroo Flat Gold Processing Plant part of the proceeds would be used to reduce the amount owing to Unity.
Unity will receive $2.075 million from the proceeds of this sale.
With the sale of the Kangaroo Flat Gold Processing Plant, GBM Gold is in discussions to secure access to a gold processing plant(s) to process its ore. Six gold processing plants are within an economic ore haul distance of Bendigo.
A number of these plants are not operating at capacity and the opportunity exists to deliver Bendigo ore to increase the efficiency of the plants and provide a positive outcome for both parties.