Saracen
(ASX:SAR) has agreed to sell its Western Australian Red October gold mine to Matsa Resources
(ASX:MAT).
The cash consideration for the binding agreement is $1 million with 4.545 million Matsa shares.
Saracen will emerge with a 3.04 per cent stake in Matsa once the transaction is complete, anticipated to be in late October this year.
Matsa will assume environmental liabilities for the mine.
The sale is consistent with Saracen’s strategy of focusing on its higher margin assets at Carosue Dam and Thunderbox.
Shares in Saracen
(ASX:SAR) are trading 1.89 per cent higher to $1.35.
