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ASX Release / 1 May 2015
St Barbara sells Gold Ridge Project in Solomon Islands
St Barbara Limited signed a Deed of Sale today for the unconditional sale of the Gold Ridge Project (and a number of associated St Barbara Group subsidiaries listed below) to a Solomon Islands company associated with local landowners. Completion of the sale is due to take place on 6 May 2015. The sale is for a nominal purchase price and on confidential terms.
The parties also signed a Deed of Indemnity and Release as part of the sale in favour of the remaining
St Barbara Group companies in respect of the Gold Ridge Project. The terms of this Deed are confidential.
As a result of the sale of the five companies, the St Barbara Group will reverse a number of balance sheet reserves and provisions that will be finalised as part of the 30 June year end reporting. The net result of the divestment is anticipated to result in a non-cash profit to the Group. Following completion, the St Barbara Group will have no residual provisions for environmental or rehabilitation liabilities relating to the Gold Ridge Project.
Tailings Storage Facility and Water Treatment Plant
As advised previously, the Solomon Islands Government formally rejected GRML's latest proposal to discharge untreated water in accordance with the environmental expert report commissioned by the Government and prepared for the World Health Organization, and also rejected GRML's offer of A$1 million funding for the construction of a water treatment plant.
To this time, GRML considers that it has done everything reasonably within its power to minimise the risk of the tailings storage facility (TSF) overflowing. The independent expert advice to immediately dewater the TSF is explicit. The immediate controlled release of untreated water would minimise the risk of the TSF overflowing and its potential subsequent failure, and GRML again calls for the Government to urgently approve the dewatering plan. GRML has infrastructure in place to immediately commence the discharge of untreated water upon receipt of the applicable permission from the Solomon Islands Government.
As part of sale negotiations, St Barbara has agreed to fund the manufacture and delivery to GRML of a replacement water treatment plant. This is likely to take up to four months.
Investor Relations
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Mr Rowan Cole Company Secretary
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+61 3 8660 1900
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Media Relations
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Ms Nerida Mossop Hinton & Associates
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+61 3 9600 1979
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St Barbara Limited
ACN 009 165 066
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Level 10, 432 St Kilda Road, Melbourne VIC 3004
Locked Bag 9, Collins Street East, Melbourne VIC 8003
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T +61 3 8660 1900 F +61 3 8660 1999
W www.stbarbara.com.au
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The St Barbara Group subsidiaries included in the Deed of Sale associated with Gold Ridge Mining Limited
(GRML) which owns the mine comprise:
Australian Solomons Gold Pty Ltd (Aus)
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ASG Solomon Islands Ltd (S.I.)
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Solomon Islands International Pty Ltd (Aus)
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Gold Ridge Mining Ltd (S.I.)
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JV Mine (Australia) Pty Ltd (Aus)
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St Barbara Limited ASX Release 1 May 2015
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St Barbara Limited
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PRODUCER |
CODE : SBM.AX |
ISIN : AU000000SBM8 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
St Barbara is a gold producing company based in Australia. St Barbara holds various exploration projects in Australia. Its main assets in production are SOUTHERN CROSS - MARVEL LOCH, GWALIA DEEPS (SONS OF GWALIA), SOUTHERN CROSS - YILGARN STAR, SOUTHERN CROSS - OTHER, SOUTHERN CROSS - TOTAL AREA, SOUTHERN CROSS - HERCULES, CORINTHIA MINE and MEEKATHARRA MINE in Australia, its main asset in development is LEONORA - TARMOOLA in Australia and its main exploration properties are SOUTHERN CROSS - NEVORIA, LEONORA - TOWER HILL, SOUTHERN CROSS - TRANSVAAL, SOUTHERN CROSS - JACCOLETTI, LEONORA - OTHER, GWALIA INT & WEST LODE, MARVEL LOCH, SOUTHERN CROSS - BULLFINCH and WALLAL in Australia. St Barbara is listed in Australia. Its market capitalisation is AU$ 139.3 millions as of today (US$ 94.6 millions, € 85.1 millions). Its stock quote reached its lowest recent point on December 05, 2014 at AU$ 0.07, and its highest recent level on February 22, 2019 at AU$ 5.32. St Barbara has 497 329 984 shares outstanding. |