Kingsgate Consolidated Limted (ASX:KCN)
says WPG Resources Limited (ASX:WPG)
will acquire the Challenger Gold mine and South Australia exploration assets.
WPG will pay around $1 million in a series of stages for Kingsgate’s subsidiary Challenger Gold Operations.
Assets include the mine, infrastructure, camp and airstrip with Kingsgate to operate them until 28 February next year.
Royalties will be payable on potential production from the new Challenger South West discovery.
Kingsgate Consolidated recorded a net loss of $147 million for the 2015 financial year.