Intrepid Mines is an international gold and copper development and exploration company operating primarily in Indonesia.
Intrepid sells Paulsens Gold Mine to Northern Star
Intrepid Mines (TSX & ASX:IAU) is divesting of its Paulsens Gold Mine in Western Australia, which is currently on a production hiatus while a additional resources are developed underground.
The Australian and Canadian listed gold junior is selling the mine to Northern Star Resources (ASX:NST) for A$27 million, of which $15 million be paid on completion of the agreement, with a further A$1 million due for every 5,000 ounces produced to a maximum of 60,000 ounces.
is pleased to report the signing of a Letter Agreement with Northern Star Resources Limited ("Northern Star") for the sale of Paulsens gold mine in Western Australia for a consideration totalling A$27.0 million.
The mine, which has produced over 340,000 ounces over a five year period, is expected to recommence production in June 2010.
"We are extremely pleased to have entered into this agreement with Northern Star for a number of reasons, but primarily because it will allow us to focus on our Tujuh Bukit Project in East Java, Indonesia where we will soon have six drills turning," said Intrepid's CEO, Brad Gordon. "At the same time, we are delighted to see someone else carrying on with operations at Paulsens, which has served our Company very well over the past four years but which no longer fits into our plan to develop a world class mining company."
Tujuh Bukit is a copper-gold-silver project is located in East Java, Indonesia which hosts a near-surface gold-silver oxide Inferred Resource of 3.3 million ounces gold equivalent, and an underlying porphyry copper-gold-molybdenum system.