Auric Mining has capitalized on the surge in gold prices by acquiring the Burbanks gold processing plant for $4.4 million, solidifying its position as a fully integrated gold miner. Located near Coolgardie in Western Australia’s Goldfields region, the plant, with a capacity of 180,000 tonnes per annum (tpa), comes with essential infrastructure and permits that will expedite the company’s growth.
The acquisition deal, which includes a $100,000 non-refundable deposit to corporate advisory BDO Queensland, is contingent on due diligence and is expected to be finalized by March next year. The plant, although non-operational since 2019, is fully equipped with crushing, grinding, and carbon-in-leach (CIL) processing facilities. Auric plans to refurbish the plant and potentially expand its capacity to over 500,000 tpa.
“This plant has all the key infrastructure and approvals in place to fast-track Auric towards becoming a fully integrated, sustainable gold producer,” said Auric Mining Managing Director Mark English. He noted that while restoring the plant to full operation could take two years, the real value lies in the time and cost savings. Rebuilding a plant from scratch would far exceed the $4.4 million price, with costs for connecting power to the site alone potentially reaching $5 million.
The Burbanks facility already holds four granted mining leases, 10 infrastructure leases, and permits for capacity expansion, positioning it as a highly strategic asset. Additionally, its proximity to mineralized ground controlled by Horizon Minerals could lead to future collaboration opportunities between the two companies.
Auric’s management has consistently focused on acquiring quality assets at discounted prices, a strategy that proved successful with the $1.4 million purchase of the Jeffreys Find gold mine, which is now expected to generate substantial returns. The company is also progressing with its Munda operation near Widgiemooltha, which is set to initially produce 6,100 ounces of gold from a starter pit before expanding to a larger 145,000-ounce resource.
Following the announcement of the Burbanks acquisition, Auric’s share price surged 14% to 36 cents, reflecting strong investor confidence. With this purchase, Auric Mining not only strengthens its production capabilities but also lays the groundwork for significant long-term growth in the high-demand gold sector.
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