JOHANNESBURG (miningweekly.com) – Australian gold major Newcrest has agreed to sell its 89.89% interest in the Bonikro gold mine, in Côte d'Ivoire, for $81-million, the company announced on Wednesday.
A consortium comprising Forbes & Manhattan Group and the Africa Finance Corporation has picked up the asset, which produced 128 327 oz of gold in the 2017 financial year and is forecast to produce between 130 000 oz and 155 000 oz in the 2018 financial year.
The sale of the Bonikro mine follows a strategic review of the asset. MD and CEO Sandeep Biswas said that the outcome of the review would deliver value for Newcrest shareholders and provide a clear future path for the mine, its employees and community members.
Newcrest will receive $72-million cash once the transaction is completed and a net smelter royalty on future ore mined at the Bonikro lease, with an estimated value of $9-million. The royalty applies to the first 560 000 oz of gold production from the next pushback at the Bonikro pit, following the completion date, at a rate of 2.5% for gold prices above $1 250/oz, increasing by 0.5% for every $50 increase in the gold price up to 4.5% at $1 450/oz or above.
The effective date of the transaction, which is subject to conditions precedent, is October 1, 2017.
Newcrest said that it expected to recognise a small net profit on the sale of the asset.
The group retains its exploration tenements in Côte d'Ivoire outside the Bonikro/Hire area, including the Seguela project, where drilling is under way.
“Newcrest continues to see the country as both highly prospective for near surface gold discoveries and an attractive jurisdiction for mining investment,” the miner stated.
Edited by: Creamer Media Reporter
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