- Saracen Mineral is set to acquire Sinclair Project from Talisman Minings’s for $10 million
- Saracen believes the project contains extensive infrastructure and assets that provides strong synergies for further exploration
- Deal to be finalised and completed by the end of October
Saracen Mineral is set to acquire Sinclair Project from Talisman Minings’s for $10 million.
The Sinclair project is located 25 kilometres south-west of the company’s Thunderbox project in the Agnew-Wiluna greenstone belt, in Western Australia.
Sinclair includes a 207 square kilometre tenement package, covering more than 80 kilometres of prospective ultramafic host rocks.
Under the deal, Saracen has agreed to acquire Talisman Nickel, a subsidiary of Talisman, who owns the project.
Saracen has agreed to pay Talisman $10 million and a 2 per cent net smelter return (NSR) on metal production from the Sinclair project tenements and non-precious metals production from the Waterloo tenement.
Saracen Managing Director Raleigh Finlayson said the project partners with the company’s organic growth strategy.
“Saracen believes Sinclair offers significant gold exploration upside close to the Thunderbox mill, this means it ticks two key boxes for us,” he said.
“The extensive infrastructure and other assets at Sinclair also provide opportunities to further enhance the Thunderbox mine and mill, adding further value to the acquisition,” he added.
Saracen believes the project contains extensive infrastructure and assets that provides strong synergies for further exploration.
The projects assets include a 200-person camp, mine buildings and workshops, core yard, 2km sealed airstrip and quality water.
“The project also hosts the Sinclair nickel deposit, which was mined between 2008 and 2013, producing approximately 38,500 tonne of nickel at an average head grade of 2.4% nickel and includes an existing +350,000 tonne per annum nickel processing plant,” the company stated.
Completion of this transaction is expected by the end of October 2019.