Integra Mining is to acquire a stake in its neighbour Southern Gold. The 10% interest will give it access to the Bulong Gold Project which Southern Gold runs right next to Integra Mining’s flagship Randalls Gold Project in Kalgoorlie in Western Australia.
Integra Mining will spend Australian $1.35 million to gain the stake in Southern Gold through a share subscription agreement. The company will purchase was Southern Gold share at $0.05 and it may invest even more in the company as Southern Gold is planning to raise another $3 million through a rights issue to shareholders.
A cap of 15% has been put on Integra Mining’s purchases of the company’s shares. The money raised will enable Southern Gold to fund an advanced evaluation study into the possibility of mining in the Cannon Gold Resources located 30 km south east of Kalgoorlie.
The Cannon Gold Resource is also part of the Bulong Gold Project which included the Bulong South and Bulong East tenements. There is the possibility of utilizing Integra Mining’s Salt Creek gold processing facility for the Bulong Gold Project.
Integra managing director Chris Cairns said the agreement with Southern Gold was a strategic move for the company. He added that the transaction with Southern Gold is in keeping with Integra’s strategy of growing their gold business and generating shareholder value. He saw Southern Gold as a solid investment with real opportunity for near-term gold production along with a prospective tenement portfolio nearby to their operations.