Metaliko Resources has purchased the Bronzewing gold mine in Western Australia’s Goldfields for $5 million.
The mine was operated until April 2013 when it was put into care and maintenance after previous owner Navigator Resources was taken over by administrators.
According to the ABC it is the third time the mine has been taken over in four years, with high costs hamstringing production at the site.
However executive director of Metaliko, Michael Ruane, says the company is confident the mine will restart in a year’s time.
"You know, the idea is without panic, we don't want to repeat history”, he said.
Ruane said if the price of gold rises over the next year, the mine would see a return to profit.
"The flip side is if the gold price went up, went back up to $1,500 which is not greatly above what it is, this could turn out quite lucrative for the Metaliko shareholders.
"The risk is that the gold price will continue to retreat in Australian dollars terms and that you are not able to establish gold grades, or resources with grades above 2 grams of more.
"But we don't intend to go into production unless we've got resources that will fit the bill."
The company plans to employ 150 people at the site when production recommences.
According to the Navigator Resource website, the Bronzewing gold mine has produced 10 million ounces of gold in the last 20 years.
Infrastructure at the mine includes a 2.3Mtpa gold processing plant, airstrip, power station, workshops, offices, assay laboratory and a 280 person accommodation village.