WPG Resources has completed the acquisition of its former joint venture partner’s 50% interest in the Challenger mining and exploration joint ventures in South Australia.
The move increased the company’s interest in the Challenger gold mine to 100% and doubled its interest in the separate West Gawler Craton gold exploration joint venture in the Challenger region to approximately 34%.
According to WPG, the purchase price was $9 million and the issue of 25 million WPG options to Diversified Minerals, WPG’s former joint venture partner in the two exploration joint ventures.
The Challenger gold mine – located close to WPGs existing Tarcoola and Tunkillia projects in the Gawler Craton – was brought back to production in May 2016 by the former joint venture, which was managed by WPG.
WPG’s Executive Chairman Bob Duffin said the acquisition has doubled the company’s share of gold production at Challenger and provided significant operating synergies for the Tarcoola and Tunkillia gold projects.
“The investment metrics for doubling our interest in Challenger alone are compelling,” Mr Duffin remarked.
“But in addition, the transaction avoids the need to process Tarcoola ore at Challenger under a costly toll treating arrangement, and it has also doubled WPG’s exposure to the exploration upside potential of the Western Gawler Craton Joint Venture.”