Newcrest sells Séguéla to Roxgold
ROXGOLD has agreed to acquire Newcrest’s Séguéla project and regional tenements in Côte d’Ivoire for $US30 million.
The Canadian company would pay Newcrest $US20 million up-front and a deferred payment of $US10 million following first gold production.
The completion of the transaction was expected in the June 2019 quarter, subject to the approval of Côte d’Ivoire’s mining minister, and the renewal of the Séguéla exploration permit.
The Séguéla project was an advanced exploration project on the near-surface Antenna gold deposit, and would become Roxgold’s second West African project.
Newcrest managing director Sandeep Biswas said the move to sell Séguéla was strategic.
“This outcome delivers value for Newcrest shareholders and provides what we believe to be the best way to maximise the potential of the asset for the benefit of our local employees, communities and Côte d’Ivoire,” Mr Biswas said.
Newcrest would continue its exploration in Côte d’Ivoire through its 50 per cent exploration joint venture with Barrick Gold.
Roxgold said it believed Séguéla had near term development potential because of the Antenna deposit, which had an inferred resource of 5.8 million tonnes at 2.3 grams per tonne of gold for 430,000 ounces.
The company said that the project was potentially “open pittable” and close to an existing power grid, transport and water resources.
Roxgold chief executive John Dorward said that the acquisition would provide an additional resource upside and a meaningful addition as a key second asset.
“Rarely does such a large and carefully assembled land package become available from one of the world’s leading gold producers,” Mr Dorward said.