Saracen Mineral Holdings will acquire Norilsk Nickel’s Thunderbox and Bannockburn gold mines.
According to Saracen the acquisition of the Thunderbox operations, located in WA’s Eastern Goldfields will add an extra 728 000 ounces to the company’s gold reserves, and 2.09 million ounces to its resource.
“The acquisition of the 2.09 million resource ounce Thunderbox operation provides Saracen with a 53% increase in mineral resources to 6 million ounces of gold and an 84% increase in reserves,” the company said.
The deal is valued at $40 million.
In addition to the gold mines it also acquired a 2.5 Mtpa CIL gold treatment plant adjacent to the Thunderbox mine, as well as supporting infrastructure such as a 268 person camp and an unsealed airstrip.
The Waterloo nickel was also part of the acquisition.
Saracen has targeted production from the site to resume within 18 months of settlement.
Norilsk sold the site as part of its wider non-core asset sell off as the miner focuses on its Russian assets.
The newly acquired operations are located north-east of Leonora and south of Leinster.