WPG Resources Ltd (ASX:WPG) has completed the acquisition of its former partner’s 50% interest in the Challenger mining and exploration joint ventures in South Australia.
This results in WPG owning 100% of the Challenger gold mine and 34% of the separate West Gawler Craton gold exploration joint venture.
To fund the $9 million (£6.87 million) cash component of the purchase price, WPG recently completed a $13.7 million (£10.46 million) capital raising.
Bob Duffin, chairman, commented: “The investment metrics for doubling our interest in Challenger alone are compelling.
“But in addition, the transaction avoids the need to process Tarcoola ore at Challenger under a costly toll treating arrangement, and it has also doubled WPG’s exposure to the exploration upside potential of the Western Gawler Craton Joint Venture”.