Saracen buys Bligh’s Bundarra project for A$8.5m in shares

PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings has struck a deal to buy Bligh Resources’ Bundarra gold project, in Western Australia, for a share consideration of A$8.5-million.

The Bundarra project has a mineral resource of some seven-million tonnes, grading 1.9 g/t gold for 431 000 oz. The project is located some 30 km south of Saracen’s Thunderbox project and will increase the company’s mineral resource within trucking distance of the Thunderbox and Carosue Dam plants by around 5%, to 8.8-million ounces.

“The financially robust openpit resource will immediately extend the mine life at the nearby Thunderbox mine, with high-grade extensional results pointing to further growth,” Saracen MD Raleigh Finlayson said on Tuesday.

The project was previously mined between 2000 and 2002, producing some 115 000 oz of gold.

Finlayson said the company will progress the project into reserve status and will follow up recent high-grade extension drill intersections below the current resource.

Bligh told shareholders that the transaction allowed the company to realise immediate value from the Bundarra asset, as the sales price implied a Bligh share value of around 3.8c each, a premium of around 40% to the company’s 30-day volume weighted average price of 2.7c a share.

The transaction proceeding is subject to a formal sale and purchase agreement, as well as shareholder approval.