Coeur d’Alene Mines (CDE-N) and Australian-listed Sons of Gwalia are selling the Indonesian asset of Gasgoyne Gold Mines, an Australian-based company they are in the process of acquiring.
Gasgoyne will sell its 45% interest in the Awak Mas gold project on the island of Sulawesi to Lone Star Exploration (LSE-V) for US$35 million and 10 million shares of Lone Star stock.
The project contains an estimated resource, at a cutoff of 0.7 gram, of 50.5 million tonnes averaging 1.7 grams per tonne, for 2.7 million oz. gold.
Gasgoyne will receive US$15 million upon completion of the transaction, with the remainder to be paid over a 3-year period. The 10 million shares of Lone Star represent about 7% ofthe outstanding shares of the company.
Coeur d’Alene (which currently owns 35% of Gasgoyne) and Sons of Gwalia (which owns more than 60%) are in the process of making the junior a private company which they will share.
Gasgoyne’s major assets include a half interest in the Yilgarn Star gold mine in Western Australia, which produces 110,000 oz. gold per year. Most of the remaining half of Yilgarn Star is held by Orion Resources, which was recently purchased by Sons of Gwalia.
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