Golden Energy JV completes acquisition of Australia gold mine

A JOINT-VENTURE (JV) company established by mainboard-listed mining company Golden Energy and Resources (Gear) and specialist mining private equity manager EMR Capital has completed its acquisition of Ravenswood Gold Mine in Queensland.

The JV company, Ravenswood Gold Group, comprises Gear's wholly-owned subsidiary, Golden Investments (Australia) II, and Raven Gold Nominee, which is the trustee of investors managed or advised by EMR.

In a previous bourse filing, Gear said Raven Gold Nominee would buy the mine for up to A$300 million (S$278.8 million).

In its latest filing on Tuesday, Gear said Raven Gold Nominee had paid former mine owner Carpentaria Gold a completion payment of A$50 million in cash, plus a working capital adjustment of A$1.6 million in cash. 

Ravenswood is about 130 kilometres south of Townsville in Queensland. It is an existing operation with "significant" expansion potential to become a large-scale, low-cost and long-life producer, Gear said in an earlier filing. 

Gear has strategic investments in gold and coking coal producers in Australia via Westgold Resources Limited and Stanmore Coal Limited.

Gear shares were trading at 17.7 Singapore cents as at 2.44pm on Tuesday, up two cents or 12.7 per cent.