WIN Metals has signed a binding memorandum of understanding to acquire the historic Radio gold mine in Western Australia, positioning the company for near-term gold production.
Located 38km north of Southern Cross in the Yilgarn region, the acquisition from Top Global Mining includes a portfolio of tenements, an operational underground mine, existing ore stockpiles, a partially constructed 500,000-tonne-per-annum processing plant, mining equipment, and accommodation facilities.
A 2018 mineral resource estimate, compiled by Resources and Energy Group under JORC 2012 guidelines, reports 210,000 tonnes at 4.23 grams per tonne (g/t) gold for 28,600 ounces of gold.
The mine boasts a history of producing 71,000 ounces at 38.5g/t gold between 1918 and 1974.
“Radio represents a fantastic opportunity for WIN to acquire a fully permitted gold mine capable of generating near-term cashflow harnessing the current elevated gold price,” WIN Metals managing director and chief executive officer Steve Norregaard said.
“The site is fully prepared to restart underground production, with a partially completed processing facility and significant operations ready infrastructure that has the potential to allow WIN to consider the option of processing its own ore and reducing dependence on delayed payments often associated with toll milling.”
Transaction terms include $500,000 cash, $400,000 in shares and a stepped royalty of 5 per cent net smelter returns on the first 18,000 ounces produced, dropping to 1.5 per cent thereafter.
Norregaard said the acquisition would not divert attention from WIN’s Butchers Creek gold project in the Kimberley.
“This acquisition provides an opportune stepping stone for WIN, elevating the company to the ranks of a producer at what was once the highest-grade producing gold mine in Western Australia,” Norregaard said.
“WIN will initially evaluate short-term open pit opportunities near existing workings at Radio Repeater, Radio South, and the central near-surface Radio resource.
“These targets, believed to have been previously overlooked, could potentially deliver immediate cash flow.”
With existing infrastructure, granted water licences, and over $30 million in prior investment by former owners, WIN expects to rapidly advance development studies and commence mining operations once regulatory approvals are secured.
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