Mt Malcolm Mines (ASX:M2M) has finalised a formal agreement to acquire major components needed for a mid-sized processing plant.
The agreement covers the acquisition of crushing, milling, power, pumps, coarse gold circuit, elution extraction, gold room, and other ancillary structures from Absolute West. Mt Malcolm will pay $550,000 plus GST, with a deposit of $100,000 payable on execution of the agreement. The balance will be paid across two installments, upon delivery of components.
Managing Director Trevor Dixon says that the acquisition is an “absolute game-changer” for Mt Malcom and its shareholders.
“We are acquiring significant components of a mid-size mill at a fraction of replacement cost and positioning Mt Malcolm to generate cash flow through toll-milling while we continue to grow our own gold inventory – essentially running two parallel and highly complementary businesses,” Dixon says.
“In an environment where processing capacity in Leonora is tightly held, this plant gives us a significant strategic advantage and a clear path to becoming a self-sufficient gold producer in one of the best gold addresses in the world.”
Mt Malcolm is in early stage discussions with firms specialising in plant relocation and engineering so that they can start a feasibility study on the development of a fully functional processing plant.
Full details on relocation, refurbishment, commissioning, and funding will be provided in the coming months.
Mt Malcolm is focused on gold exploration in the central eastern Goldfields.
Write to Amy Rotman at Mining.com.au
Images: Mt Malcolm Mines
