Monument buys Murchison project
The new year flurry of gold deals continued yesterday, with Canadian gold producer Monument Mining revealed as the mystery buyer of Kentor Gold's failed Murchison project.
Although the sale was flagged by Kentor Gold's rebadged entity KGL Resources late last month, the Canadian and London-listed Monument revealed it was taking control of the project in a $15 million all-cash deal.
The cashed-up Canadian company, valued at $C85.3 million ($88.4 million), operates the low-cost Selinsing gold mine in Malaysia. It is understood to have signed off on the deal - which is subject to Foreign Investment Review Board approval - after about six weeks of due diligence.
KGL said there were two other parties interested in the mothballed mine, taken over by administrators last March.
In a statement yesterday Monument, which had $64 million in the bank at September 30, said it would "move quickly with expectation to place this project into production".
It said it would conduct a feasibility study into its mine plans, but added there was "no certainty" the operation would be economically viable.
Murchison is the second brownfields gold project to change hands this week.
Metaliko Minerals announced late on Monday it had struck a deal with the administrators of Navigator Resources to buy the failed Bronzewing mine in the Goldfields for $4.8 million.
However two major projects remain in the bargain bin, with Reed Resources' Meekatharra project, which collapsed in August, still on the market and Apex Minerals' Wiluna project, placed into receivership in June.
KGL (then Kentor) bought the Murchison project for $12.8 million in 2011 and raised $20.5 million to develop it.
It reported a "ramp-up" stage for about four months, producing 4300 ounces at an unknown cost, before the administrators were called in.
Queensland-based KGL Resources regained control of the mine via a deed of arrangement last month. KGL is now focused on its Jervois copper mine in the Northern Territory.
For Monument, the deal marks the return to WA for its chairman Robert Baldock after 23 years.
Mr Baldock spent the late 80s and early 90s as the executive chairman of Golconda Minerals, which controlled the Duketon gold project - now run by Regis Resources - before going into liquidation.
Monument also appears to be under pressure, with six new directors applying to join its board at its upcoming annual meeting.
A spokesman from Germany declined to comment on the directors' nominations.
