Stirling Resources Limited (ASX:SRE) To Complete Monarch Gold Transaction
Perth, Feb 23, 2010 AEST (ABN Newswire) - West Australian resources developer Stirling Resources (
ASX:SRE) advises it is completing funding and documentation arrangements for the A$15m recapitalisation of Monarch Gold with formal settlement to occur later this week.
Settlement date for the transaction is set for 26th February 2010 and on completion Stirling will own and control 35% of Swan Gold Mining Limited (the renamed Monarch Gold company).
Stirling reached agreement last year with Administrators Pitcher Partners to inject funds into Monarch to restart operations at the Carnegie and Mt Ida gold projects in the West Australian Goldfields.
Monarch shareholders subsequently approved the recapitalisation proposal and name change.
Managing Director Michael Kiernan said once the transaction was settled Swan Gold would be in a position to hit the ground running to recommence mining and processing operations.
"We have put together a Board and management team with a track record of project development and operations and whom have excellent gold experience in the region," he said (For biographies please click the link at the bottom of release).
"We currently have mining consultants SRK reviewing the Carnegie open pit Resources for Riverina, Sandking and Missouri pits, with a focus on grade control methodology, with an aim to recommence operations as soon as practicable," he said.
"Planning is also underway to look at the possibility of restarting the very high grade underground Mt Ida gold mine within three months, involving toll treatment of ore at a third party plant to take immediate benefit from the very attractive cash margins which can be generated," Mr Kiernan said.
Mr Kiernan said the Company will be making an immediate application to re-list on the Australian Securities Exchange as Swan Gold Mining Limited (ASX code: SWA).
The key assets for Swan Gold comprise:
- The high grade Mt Ida underground gold mine, with established Resources, Reserves and existing mine infrastructure.
- The Carnegie gold project, which includes established Resources and a 1.2 mtpa gold processing facility currently on care and maintenance.
- 2,700 square kilometres of granted tenements in the Eastern Goldfields north of Kalgoorlie which includes a large and significant geological data base.
Mr Kiernan said Mt Ida was targeted to produce 40,000 ounces per year, while Carnegie has a production target of 60,000 ounces per year.
For a corporate overview on Swan Gold, please visit:http://www.swangoldmining.com.au
For Biographies please click the link below:
http://www.abnnewswire.net/media/en/docs/62336-ASX-SRE-481379.pdf
Contact
Michael Kiernan
Managing Director
Tel: +61-8-6389-6800
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