Stavely Minerals Limited (ASX: SVY) today announced to the ASX that it is set to acquire 100 percent beneficial interest in the assets of Beaconsfield gold processing plant and associated infrastructure in Tasmania.
SVY is making this acquisition through its 100 percent subsidiary, Stavely Tasmania Operations Pty Ltd. The Beaconsfield Gold plant facility currently has a capacity of 350,000 tpa and the processing facility is 130km by road from Stavely’s high-grade Mathinna Goldfield and the company believes this investment could integrate the Tasmanian gold business.
The company, in its ASX release, stated that a payment of $250,000 would be deposited on execution and the deposit would be held in a trust until the completion. The payment of the remaining $1,750,000 would be made within 90-days of execution. The company stated that post the completion, the assets associated with the Beaconsfield gold processing plant would be transferred to its subsidiary Stavely Tasmania Ops, and after transfer of mining lease, Stavely Tasmania Ops will replace an environmental bond to be set at half a million dollars.
Some conditions that the company must meet include are: Stavely Tasmania Ops to obtain the prior consent of the Tasmanian Minister for State growth for the transfer of the mining leases and permits and Stavely Minerals to raise sufficient capital to fund the acquisition.
In November 2018, the subsidiary company received application rights to an exploration licence (EL 19/2018) and, it also received rights for 68 sqkm ELA1118 collectively covering all of the high-grade Mathinna goldfield. This site has an official record of production of 289,000 oz at an average grade of 26g/t gold from the New Golden Gate Mine. With this upgrade, the processing plant could be configured with the optionality to process both refractory and free-milling gold ore types providing for significant flexibility to treat material from diverse sources in the region.
The company further highlighted that it had commissioned Como Engineers to complete a condition and suitability report. As per Como report, a cost of $9.24 million would be incurred or refurbishing and upgrading the plant to process high-grade free-milling gold ore.
The company remains focused on its porphyry exploration campaign at Thursday’s Gossan prospect. The company is expected to provide updates regarding on-going drilling soon.
Mr. Chris Cairns, the Executive Chairman, said that the acquisition of the existing Beaconsfield gold processing plant would enable it to fast-track its high-grade Tasmanian gold strategy by considerably reducing the capital hurdle to production. He further highlighted that the company’s focus primarily remains on the search for a giant copper-gold porphyry in Western Victoria. The opportunity to acquire this high-grade gold asset in Tasmania was too compelling to let go as it costed very little to make this acquisition.
The stock has delivered a YTD returns of 46.51%, and it has produced an impressive gain of 57.50%, and 61.54% in the past six months and three months respectively. However, the share has been consolidating in the past month with a return of -7.35%.
The share closed the day’s trading at A$0.330 on ASX (As on Fri 22), up by 4.762%.
Stavely Minerals Limited’s (ASX: SVY) market capitalization is ~ $49.29 million. The total number of outstanding shares is ~156.47 million. The avg. trading volume is 138,470. The Stock’s 52-week high price is A$0.036, and the 52-week low price is A$0.165. As per the latest ASX update, the company’s EPS stood at -0.063 AUD.