Australian gold producer Gold Road Resources has confirmed its participation in the sale process for a stake in Greenstone Gold Mines, located in Ontario, Canada.

The process of divestiture is being conducted by Orion Resource Partners (USA).

Gold Road noted that it has not yet reached any definitive agreements regarding the acquisition but remains actively involved in the ongoing sale process.

In a statement the company said: “Gold Road continues to evaluate strategic opportunities and will only pursue acquisitions if it is in the best interests of its shareholders.

“The company will keep the market informed in accordance with its continuous disclosure obligations.”

According to the Australian, Orion is seeking a valuation of more than A$1bn ($640.65m) for Greenstone and Gold Road Resources.

As of the end of 2023, Gold Road reported having A$143.8m in cash and A$465m in investments, including a 19.9% stake in De Grey Mining.

Speculation is rife that Gold Road may divest its stake in De Grey Mining to fund the potential acquisition of Orion’s 40% interest in Greenstone Gold Mines.

Greenstone is a joint venture between Equinox Gold, which holds a 60% interest, and Orion Resource Partners.

The mine is expected to commence production in May 2024 and projected to yield 400,000oz of gold annually for the first five years.

The Greenstone Gold Mines project gained momentum following a feasibility study completed by Premier Gold in December 2020.

The study outlined the development of an open-pit mine expected to produce more than five million ounces of gold over an initial 14-year mine life.

Equinox Gold acquired Premier Gold and a 50% interest in Greenstone in April 2021, later increasing its stake to the current 60%.