Aurelia Metals announced yesterday it will acquire Dargues Gold Mine for in a total deal worth A$205 million (US$149 million).
The deal is comprised of A$176 million cash, A$24 million Aurelia shares and a contingent payment of $5 million.
Dargues is expected to produced an average of 45-55koz of gold at an all-in-sustaining cost of A$1,150-$1,350 over the next five years.
Acquisition will be paid for through a fully underwritten capital raising.
In 2020 Aurelia produced 92,000 ounces of gold at an all-in-sustaining cost of $1,520. The company already runs Peak and Hera mines in Australia.
On the Kitco Roundtable podcast, the CEO of Eredene Resource, Peter Ackerley, said the move could be bullish for the mining sector as a whole.
“I think the acquisition is important, but I really think it could be a bellwether of change for acquisitions in our industry. Australia is often ahead of the curve, and I do think that things will heat up here in the North American markets and in gold acquisition space,” said Akerley. “I see a lot of discussions right now amongst the early stage developers, pre-development companies looking at a merger of equal type of opportunities.”
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