Home Alternative Investments WPG Resources Ltd completes acquisition of Challenger gold mine

WPG Resources Ltd completes acquisition of Challenger gold mine

by Jonathan Adams

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”.

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

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