Jan 15, 2020

Maroon Gold acquisition falls through

Maroon Gold acquisition falls through

Perth-based European Cobalt has opted out of a deal to buy the gold-focused business responsible for restarting Charters Towers’ Blackjack processing plant.

The company in November announced that it had entered an exclusive option agreement with the shareholders of Maroon Gold to acquire 100 per cent of its issued capital.

But it decided late last month that it would not proceed with the acquisition.

“The company advises that there are no outstanding obligations between EUC and Maroon,” it said.

Maroon Gold, a private equity backed vehicle, achieved its first gold pour in 2019 after a $5 million project to refurbish and modernise the Blackjack processing plant at Charters Towers.

It was initially feeding the plant with ore from Far Fanning – one of a cluster of gold projects Maroon Gold holds in the Charters Towers region.

Others include the Great Britain deposit on the outskirts of Charters Towers, Granite Castle, and a dozen mining leases around the Blackjack plant – where high-grade production dates back to the early 1900s.

Maroon Gold has also been mining and processing high-grade gold material from Laneway Resources’ Agate Creek gold project, near Kidston.