New Ravenswood gold mine owners EMR Capital and Golden Energy and Resources have flagged a keen interest in ramping up operations and extending the life of the business.
The EMR GEAR Consortium described the operation as having significant expansion potential to become a large scale, low cost and long life producer.
“The Ravenswood acquisition creates a truly exciting opportunity to leverage the positive macro fundamentals in the gold sector and EMR’s strong operational expertise,” EMR chief executive officer Jason Chang said.
“We look forward to realising the potential Ravenswood offers to ramp up production, expand resources and reserves and extend mine life.”
The EMR GEAR Consortium has agreed to pay $100 million upfront – comprising $50 million of cash and $50 million of deferred consideration via the issue of a promissory note.
The acquisition deal also includes up to $200 million in contingent upside instruments linked to the average gold price and the investment outcomes of Ravenswood for the EMR GEAR Consortium.
Completion is subject to standard terms and conditions and is expected prior to the end of March 2020.
EMR also owns the Capricorn Copper mine in North West Queensland and a stake in the Kestrel coking coal mine near Emerald in the Bowen Basin.
GEAR has a 28 per cent stake in Stanmore Coal, the owner of the Isaac Plains coal complex in the Bowen Basin.