Australian gold miner Kingsgate Consolidated has announced the sale of its 100% owned Challenger Gold Mine in South Australia to a 50/50 Joint Venture between Diversified Minerals and WPG Resources Limited.
Kingsgate said the change in ownership will take place on 15 March 2016 – a modest extension to the previously announced hand over date of the end of February 2016 – allowing for an orderly completion of all site activities by Kingsgate and a smooth transition to the new owners.
“The sale of Challenger signals the first strategic step towards securing a new future for the company,” said Kingsgate Chief Executive Officer, Mr Greg Foulis.
“We can now concentrate on pursuing new business and mine development opportunities to enhance our portfolio including pushing ahead with our exciting development, Nueva Esperanza in Chile.”
The company said it maintains previous guidance for Challenger with” attributable production” of approximately 10,000 ounces of gold for the March 2016 quarter.