Norilsk Nickel Australia Pty Ltd, a subsidiary of OJSC Norilsk Nickel ("Norilsk Nickel"), has entered into a definitive agreement to sell its North Eastern Goldfields Operations in Western Australia ("NEGO") to Saracen Metals Pty Ltd ("Saracen"), a wholly owned subsidiary of the Saracen Mineral Holdings Limited a company listed on the Australian Securities Exchange.
The North Eastern Goldfields Operations in Western Australia include the open pit Thunderbox gold mine and processing facility (together "the Assets") and are a part of Norilsk Nickel's Australian operations earmarked for the disposal by Norilsk as it continues to implement its new strategy announced in October 2013.
Consideration payable by Saracen to Norilsk Nickel will include upfront and deferred cash components and a royalty upon the commencement of production, with a total aggregate value of up to A$40 million.
In addition, Saracen will assume all environmental rehabilitation obligations related to the Assets.
The sale is subject to regulatory approvals and satisfaction of other customary closing conditions and is expected to close in the first half of 2014.