Mining company Gold Road Resources (ASX:GOR) has announced the complete takeover of the South Yamarna project for $7 million.
The company’s South Yamarna subsidiary has agreed to takeover Sumitomo Metal Mining Oceania’s 50 per cent interest in the project.
The acquisition will consolidate Gold Road’s ownership of the majority of the Yamarna Belt, which currently has 6.8 million ounces of gold in resource.
Since the joint venture with Sumitomo started in 2013, a 6.2 million ounce deposit was discovered at the mine, which Gold Road’s Managing Director and CEO Ian Murray says will be producing gold and significant cash flows from 2019.
The sale is expected to be complete by 30 June 2018.
Shares in Gold Road Resources (ASX:GOR) closed 3.73 per cent lower yesterday at $0.78.