Diversified resources company Kidman Resources has inked a deal to acquire the Mt Holland goldfield near Southern Cross in Western Australia.
According to the ASX Announcement, the company will pay $2 million in cash upon shareholder approval and another $1.5 million in either cash or stock once certain conditions are met “in relation to forfeiture claims that were lodged over some tenements prior to Kidman entering the Heads of Agreement”.
Kidman agreed to acquire the Mt Holland gold field back in December.
The company plans to upgrade the existing gold resource at Mt Holland with a budgeted 10,000 metre drilling program, update the feasibility study and start plant construction in the beginning of 2017.
“The acquisition of the Mt Holland goldfield is consistent with Kidman’s strategy to become a substantial Australian gold producer by acquiring projects with immediate or near term cash flow potential and strong potential for resource growth,” Kidman said.
“Mt Holland meets Kidman’s acquisition criteria perfectly with an existing ?1million-ounce Mineral Resource, significant scope to increase this inventory and access to existing infrastructure in the WA goldfields.”
Kidman Resources owns the Burbanks Gold Mine in WA, an advanced exploration project in the Northern Territory, the Crowl Creek Project in New South Wales and the Brown’s Reef project in the southern part of the Cobar Basin.