THE BOURSE WHISPERER: Saracen Mineral Holdings (ASX: SAR) is to acquire the Bundarra gold project in Western Australia from Bligh Resources (ASX: BGH).
Bundarra is located 30 kilometres south of Saracen’s Thunderbox project, and adjacent to the sealed Goldfields Highway.
Saracen Minerals Holdings will pay $8.5 million worth of company shares for the acquisition of 100 per cent of the project is $8.5m.
Along with the project Saracen will pick up Mineral Resources of 7 million tonnes at 1.9 ggrams per tonne gold for 431,000 ounces of golf, which equates to less than $20 per Resource ounce.
Saracen said the acquisition will increase Mineral Resources within economic trucking distance of the company’s Thunderbox and Carosue Dam plants by approximately five per cent to 8.8 million ounces.
“Bundarra is a sensible low cost bolt-on acquisition for Saracen,” Saracen Mineral Holdings managing director Raleigh Finlayson said in the company’s announcement to the Australian Securities Exchange.
“The financially robust open pit Resources will immediately extend the mine life at the nearby Thunderbox mine, with high-grade extensional results pointing to further growth.”