Australia-based Metaliko Resources (MKO) has entered into an agreement with the administrators of Navigator Resources to acquire the Bronzewing gold project, in Western Australia.
MKO will acquire 100% ownership of the facility, which mills two million tonnes per year, and its associated infrastructure, project tenements and contained gold resources, for $4.82m.
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Bronzewing ceased production in June 2013, after administrators assessed the project and Navigator Resources, to determine restructuring and consolidating options.
Under the agreement, MKO would arrange for the release of $7.08m of bank deposits to the administrators, which were previously lodged by Navigator to cover government environmental bonds.
The release or replacement of the environmental bonds was required by the end of 31 July 2014, the company said.
MKO said in a statement that: "It is likely that the company will undertake a rights issue shortly to raise funds of approximately $6.9m required for the purchase and working capital."
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By GlobalDataThe transaction is dependent on MKO securing funding within the timeframe.
Following the completion of the transaction, MKO intends to proceed with the drilling programme in the project tenements.
The company aims to establish gold resources of a sufficient grade for economical mining at current gold prices and to recommence mining as soon as possible.
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