Australian gold producer Pantoro has completed the sale of the Halls Creek Project in WA to Kimberley Minerals.

The deal between Pantoro and Kimberley Minerals, a member of the Perth-based KMG Group, was signed in October 2024.

The total sale value is A$8m ($5.20m), which is planned to be paid in stages over the next two years.

Pantoro made the initial payment of A$3m to Kimberley Minerals with the completion of the deal.

Pantoro will make a A$2m payment in 12 months after the completion, another A$2m at the 24-month mark and a 1% royalty commencing 24 months after completion, capped at A$1m.

The deferred sale consideration is secured through a mortgage over the project's tenure.

In addition to the sale, Pantoro retains a 15% free carried interest in nickel and platinum group elements within the Halls Creek Project area, covered by a mineral rights agreement.

The Halls Creek Gold Project was placed on care and maintenance by Pantoro in June 2023 to focus on its resources on expanding the Norseman Gold Project in the Eastern Goldfields of WA.

The Halls Creek Project had been in successful operation since 2015.

Located at the southern end of the Norseman-Wiluna greenstone belt, the Norseman Project is estimated to hold mineral resources of 4.8 million ounces of gold.

At the time of deal announcement, Pantoro managing director Paul Cmrlec said: “The Halls Creek Project was the first full mine developed by Pantoro in 2015 and was a critical element in the evolution of the company.

“We firmly believe that now is the right time to focus our effort and resources on growth at Norseman, which provides the best upside potential for our investors.

“We wish KMG the best of luck in the further development of the Halls Creek Project and, with our free carry interest, will take a keen interest in its future.”