MMG Ltd. has entered into a conditional share sale agreement with EMR Golden Grove Holdings Pty Ltd., an entity owned and managed by EMR Capital, for the purchase of Golden Grove for $210 million. The transaction, which still requires MMG board approval and receipt of MMG financier consents, was the result of a sale process that began in August following a number of informal approaches about the operation. A deposit of US$15 million has been paid with the balance due on completion. The deal is expected to close by the end of February.
Golden Grove is a base and precious metals operation located in Western Australia about 450 kilometers (km) northeast of Perth and 250 km east of Geraldton. The two underground mines produce zinc in zinc concentrate, copper in copper concentrate and a high precious metals (HPM) concentrate using sublevel stoping. The operation was expected to produce 45,0000-55,000 metric tons (mt) of zinc and 10,000-12,000 mt of copper in 2016.