Gold producer Kingsgate Consolidated Limited (ASX:KCN) has inked a deal to buy the Bowdens silver project in New South Wales for $75 million from Silver Standard Resources.
Kingsgate says the project has been subject to extensive technical and feasibility due diligence.
The company plans to now fast track Bowdens through a bankable feasibility study and believes it could be in production by early 2014.
The purchase price comprises of $45 million in cash payments and $30 million in Kingsgate shares, and the transaction is expected to close by October.
In the first half of its 2011 financial year, Kingsgate Consolidated posted a profit of $11.6 million.
