Straits Resources Limited (ASX:SRQ), has sold its Hillgrove mine to Ancoa for $40 million.
The companies are expected to formally announce the deal today.
The antimony-gold project near Armidale in the New England region of NSW was put on care and maintenance in 2009 because of equipment problems.
Ancoa’s managing director Greg Steemson says the company plans to have the project back in production in the next 12 months.
The acquisition of the Hillgrove project is subject to the completion of an IPO, expected to be $80 million, by the end of the year.
