Austral buys contract miner Humberto
PERTH (miningweekly.com) – Precious metals developer Austral Gold has acquired a majority shareholding in mining services provider Humberto Reyes, which has been undertaking underground contract mining at the company’s Guanaco gold mine, in Chile.
Austral has paid about $2.7-million for its majority ownership in Humberto Reyes, which has an estimated book value of $4-million.
“The transaction is a pleasing development for Austral Gold and represents a key strategic investment in the further development of our flagship Guanaco project,” said Austral director Stabro Kasaneva.
He noted that the transaction would deliver significant savings to the Guanaco mine, and provided Austral with the flexibility to accelerate mining at the project, while also allowing for greater control over safety and production practices.
The acquisition would further ensure a continued competitive cost, and would give management greater control over the Guanaco mine operations.
The ASX-listed junior would also have the option of acquiring the remaining 49% stake in Humberto Reyes in the next two-and-a-half years, at a price to be agreed upon.
Kasaneva said on Tuesday that Austral, in the meantime, was exploring a number of opportunities near the Guanaco mine area, which could add considerable value to the company.
“Now that we have an in-house mining service capability through this transaction, we can quickly develop new projects and potentially increase production beyond current levels of 5 000 oz/y of gold.”
Mining operations at Guanaco started in August 2010 and the mine produced 50 226 oz of gold and 18 215 oz of silver during 2013.
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