WIN Metals to buy Western Australia’s Radio gold mine
WIN Metals has signed a binding memorandum of understanding (MoU) to acquire the Radio gold mine from Top Global Mining.
The acquisition encompasses a suite of tenements, mining and processing assets, accommodation facilities, vehicles, and other equipment.
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WIN aims to leverage the A$30m ($19.3m) investment by previous owners to implement a strategy that includes underground development and potential shallow open pits.
The transaction terms include an upfront payment of A$500,000 and a share consideration of A$400,000, with a deferred stepped royalty on gold sales.
Completion is subject to regulatory and third-party approvals, and the consideration shares will be issued under WIN’s placement capacity.
The Radio gold mine, situated 38km north of Southern Cross in Western Australia’s Yilgarn region and approximately 400km east of Perth, is ready to restart operations, with essential infrastructure in place.
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By GlobalDataThis includes development to the second level, mobile mining equipment, power generators, compressed air and a processing facility that is 70% complete.
The 2018 Mineral Resource Estimate (MRE) reports a total resource of 210,000 tonnes (t) at 4.23 grams per tonne of gold, equating to 28,600oz of gold.
WIN Metals managing director and CEO Steve Norregaard said: “Radio represents a fantastic opportunity for WIN to acquire a fully permitted gold mine capable of generating near term cash flow harnessing the current elevated gold price.
“The site is fully prepared to restart underground production, with a partially completed processing facility and significant operations-ready infrastructure that has the potential to allow WIN to consider the option of processing its own ore and reducing dependence on delayed payments often associated with toll milling.”
WIN has identified open-pit opportunities and plans approximately 7,000m of shallow drilling to delineate resources. An updated MRE will inform mining studies to exploit these gold targets.
The company also intends to assess the potential of processing plant investment by the previous owners and explore underground mining opportunities at the Radio deposit.
The deposit remains open, with no drill-holes exceeding 260m, indicating potential for further mineralisation at depth.
“WIN will initially evaluate short-term open-pit opportunities near existing workings at Radio Repeater, Radio South and the central near-surface Radio resource. These targets, believed to have been previously overlooked, could potentially deliver immediate cash flow,” Norregaard added.
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