Lihir Gold (TSE:LGG) Sells Ballarat Mine

Lihir Gold (TSE:LGG) (Nasdaq:LIHR) announced it has completed the sale of its Ballarat mine to Castlemaine Goldfields Ltd.

In March Lihir let it be known they were going to close the mine and reached a deal with Castlemaine to sell them the mine for $4.5 million in cash and another 2.5 percent royalty interest in the mine up to $50 million in future production.

Castlemaine has stated in the past they will explore the mine for a nine month period once they take possession. If there is progress, they will explore another nine months before beginning production.

Lihir Gold (NASDAQ:LIHR) Sells Ballarat Project

Lihir Gold Sells Ballarat Project

Lihir Gold (ASE:LGL) has sold its Ballarat project to Castlemaine Goldfields (ASE:CGT) for A$4.5 million.

Based in Victoria, Australia, the Ballarat Gold Mine sale will be subject to meeting certain conditions; a major part being the issuing of stock to raise A$20 million.

Terms of the deal, along with the sales price, includes Castlemaine keeping a 2.5 percent royalty of any production in the future, with a cap of A$50 million on that part of the agreement.

In the near term Lihir said it will focus on exploration rather than operations at this time.

Lihir Gold Sells Ballarat Project