Orminex and Macmahon Holdings have entered into an agreement to acquire underground mining contractor GBF, enabling GBF to potentially expand the Mineral Venture Model into surface mining projects.
|Image courtesy ©Orminex|
The acquisition includes all GBF subsidiaries and is subject to certain conditions precedent before settlement.
Orminex has a strategic alliance with GBF who oversees all operational management of the Company’s projects under the Mineral Ventures Model which provides capital and mining service solutions to suitable near-term production gold projects. Orminex’s existing strategic alliance with GBF will continue under GBF’s new ownership.
The Company has also announced that Mr Michael Foulds, current co-owner of GBF and major shareholder of Orminex will join the Board of Orminex as a Non-Executive Director once the sale of GBF to Macmahon is completed.
Mr Ross Graham, also a current co-owner of GBF and major shareholder of Orminex, will also be appointed as an Alternate Director to Michael once the sale of GBF to Macmahon is completed.
Executive Chairman Daryl Henthorn believes that the company now has the potential to seek to leverage Macmahon’s extensive surface mining capabilities to open up a pipeline of new projects that Orminex can evaluate and pursue under its Mineral Ventures Model.
“In addition to our current underground mining operations, we are now able to consider expanding our portfolio to incorporate surface mining, opening up the market for the Mineral Ventures Model,” said Mr Henthorn.
In 2018, Orminex entered into a strategic alliance with WA-based contract mining services provider GBF to form the Mineral Ventures Model. The primary aim of the model is to source, develop and fund stranded, high-grade gold assets to production.
Orminex currently has a 51 per cent joint venture interest in the producing Comet Vale gold project and 100 per cent ownership of the high-grade Penny’s Find Gold Mine near Kalgoorlie. The Company also owns 100 per cent of the Golden Lode project located 130 kilometres from Coolgardie in Western Australia, and 100 per cent of the Happy Jack project located 30 kilometres south of Menzies, also in Western Australia.