| Purchase of Thunderbox royalty - 160421 ASX | |
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Quarterly Report
SARACEN MINERAL HOLDINGS LIMITED
ACN: 009 215 347
Thunderbox costs fall to ~A$1000/oz following purchase of royalty
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Corporate Details:
21st April 2016
ASX code: SAR
Corporate Structure:
Ordinary shares on issue: 792.8m (pre- issue of 8.0m)
Unvested employee performance rights: 20.2m
Market Capitalisation: A$809m (share price A$1.02)
Cash & Bullion (31 March): A$34.3m Debt: Nil
Directors:
Mr Geoff Clifford
Non-Executive Chairman
Mr Raleigh Finlayson Managing Director
Mr Mark Connelly Non-Executive
Mr Martin Reed Non-Executive
Ms Samantha Tough Non-Executive
Substantial Shareholders:
Wroxby 8.2%
Paradice Investment Management 8.0% Van Eck 7.4%
Karara Capital 6.1%
Registered Office:
Level 4
89 St Georges Terrace Perth WA 6000
Telephone: +61 8 6229 9100
Facsimile: +61 8 6229 9199
For further details contact:
Troy Irvin Telephone +61 8 6229 9100
[email protected]
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Key Points
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Saracen buys the Norilsk royalty (1.5% NSR, capped at A$17m) relating to the Thunderbox gold project in WA
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As a result of the transaction, the royalty is cancelled
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Consideration is 8.0 million new fully paid ordinary shares in Saracen, plus US$500,000 cash
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The acquisition is anticipated to reduce all-in sustaining costs at Thunderbox by ~A$25 to ~A$1000/oz
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Thunderbox commissioning almost complete with commercial production anticipated in the current June Quarter, doubling total group production to an annualised rate of ~300,000oz
Saracen Mineral Holdings Limited (ASX: SAR) is pleased to advise that it has exercised its pre-emptive right to buy the Norilsk Net Smelter Return royalty (NSR) of 1.5% (capped at A$17m) relating to Saracen's 100 per cent-owned Thunderbox Project in WA.
The consideration is 8.0 million new fully paid ordinary shares in Saracen, plus US$500,000 cash.
Following the purchase, the sole residual royalty applying to the Thunderbox project will be the standard State gold royalty of 2.5%.
Saracen Managing Director Raleigh Finlayson said the purchase of the Norilsk royalty would enable Saracen shareholders to receive the full economic benefits of Thunderbox's production.
"This deal is a prudent use of capital" Mr Finlayson said. "It will be of significant benefit to Saracen shareholders because it removes an embedded cost from the Thunderbox business, further expanding the margins and boosting cash generation".
For further information please contact:
Investors: Media Enquiries:
Troy Irvin Read Corporate
Corporate Development Officer Paul Armstrong / Nicholas Read
Email: [email protected] Contact: (08) 9388 1474
Email: [email protected]
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Saracen Mineral Holdings Ltd
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PRODUCER |
CODE : SAR.AX |
ISIN : AU000000SAR9 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Saracen Minerals Holdings is a gold producing company based in Australia. Saracen Minerals Holdings holds various exploration projects in Australia. Its main assets in production are CAROSUE DAM and SOUTH LAVERTON in Australia, its main assets in development are PORPHYRY, SAFARI BORE and RED OCTOBER in Australia and its main exploration properties are DEEP SOUTH UNDERGROUND, MEXICO, ELLIOTS LODE, MILLION DOLLAR, MONTYS DAM, MARGARET, YUNDAMINDERA, TWIN PEAKS, BUTCHER WELL, ENTERPRISE, DEEP SOUTH, WALLBROOK, PORPHYRY UNDERGROUND, KARARI and WHIRLING DERVISH in Australia. Saracen Minerals Holdings is listed in Australia. Its market capitalisation is AU$ 3.8 billions as of today (US$ 2.9 billions, € 2.4 billions). Its stock quote reached its lowest recent point on July 12, 2013 at AU$ 0.09, and its highest recent level on July 31, 2020 at AU$ 6.75. Saracen Minerals Holdings has 807 550 016 shares outstanding. |