Saracen Mineral Holdings has become a 50% owner of the Kalgoorlie Super Pit, following the USD $750 million purchase from Barrick Gold Corporation last week.
Saracen Mineral Holdings Managing Director Raleigh Finlayson.
The purchase was made on the terms outlined in Saracen’s ASX release on 18 November 2019, along with the draw down of A$400 million debt. As announced, Saracen fulfilled the only condition to the sale being the consent from the Western Australian Minister for Finance, Aboriginal Affairs and Lands. The acquisition was also well supported by shareholders, old and new.
Announced on Monday 25 November 2019, the purchase of 100% of the Barrick shares was completed by the end of last week, making Saracen the equal owner alongside Newmont Goldcorp Australia of the Kalgoorlie Consolidated Gold Mines Joint Venture (KCGM JV). The KCGM JV owns and operates the Super Pit gold mine in Kalgoorlie-Boulder, Western Australia.
Saracen Mineral Holdings Managing Director Raleigh Finlayson said the completion of the Super Pit acquisition marked a key milestone in Saracen’s growth strategy.
“The acquisition of a half-share of the Super Pit transforms Saracen into one of Australia’s leading gold producers,” Mr Finlayson said.
“We now have three long-life assets generating strong cash flow in a Tier-one location. Each asset also has outstanding exploration potential, providing scope to create further value for shareholders through organic growth.
“We are looking forward to partnering with Newmont Goldcorp, which has extensive knowledge of the Super Pit and vast experience in open-pit and underground operations.
“On behalf of Saracen, I would like to thank Barrick for its co-operation and support throughout the transaction,” he concluded.
The Fimiston Open Pit, known colloquially as the Super Pit is one of the largest open pit gold mines in the world. It’s oblong-shaped pit is approximately 3.5 kilometres long, 1.5 kilometres wide and over 600 metres deep. In 2019, KCGM celebrated its 30th year of operation, with an open day for the Kalgoorlie-Boulder and wider Goldfields community.