PERTH (miningweekly.com) – ASX-listed Silver Lake Resources has announced the sale of its Lakewood mill assets, in Western Australia, in a deal worth A$5.5-million.
The company would receive a 2% gross revenue royalty on all minerals mined or recovered from two mining leases.
The gold processing facility, which was acquired by Silver Lake at the end of 2007, can process some 700 000 t/y of hard rock and 900 000 t/y of soft rock, following a 2011 upgrade.
The mill was placed on care and maintenance as Silver Lake’s focus shifted to the Randalls mill.
The gold miner has been seeking either a toll treatment or outright purchase for the Lakewood mill since July this year.
Silver Lake told shareholders on Wednesday that the completion of the divestment was conditional upon a six-week final due diligence and financing period, and would likely occur in the December quarter.
A A$500 000 deposit has been paid to Silver Lake for the Lakewood assets.