Intermin Resources has agreed to buy the mothballed Coolgardie gold project from Focus Minerals for $40 million in cash and shares.

Focus will receive $31 million in cash and $9 million worth of new Intermin shares in a series of payments over three and a half years after the deal is completed.

The agreement has a five-month exclusivity period.

Intermin is in the process of completing a friendly merger with MacPhersons Resources.

Intermin managing director Jon Price said Intermin’s and MacPhersons’ assets would be a natural fit with the Coolgardie gold project.

The project, shut since 2013, includes the Brilliant open cut and underground project, the Bonnie Vale underground discovery and the 1.2 million tonne-a-year Three Mill processing facility.

“We look forward to working with MacPhersons and Focus on progressing these transactions,” he said.

Focus chief executive Zhaoya Wang said the sale would allow Focus to concentrate on progressing its Laverton gold project.

“We look forward to working with MacPhersons and Focus on progressing these transactions,” he said.

 

 

Image: Intermin Resources Chairman Peter Bilbe and Managing Director Jon Price with Macphersons Resources Chairman Ashok Parekh, The West Australian.