Galena Mining Ltd (ASX:G1A) has acquired the Higginsville Gold Operations Pastefill Plant (HPP) from Westgold Resources Ltd (ASX:WGX) for consideration of 11.6 million Galena shares, worth around $2.25 million.
The plant will be contributed by Galena to Abra Mining Pty Limited, the joint venture company that is developing the Abra Base Metals Project.
It will then be refurbished and reinstalled at the project to provide the paste backfill cement required for Abra’s underground mining operation.
“Technically robust solution”
Galena's managing director Alex Molyneux said: “The refurbished and reinstalled HPP is much cheaper than alternatives but it’s also a technically robust solution to Abra’s paste fill requirements.
“I’m pleased the opportunity presented itself to complete its acquisition.”
The plant is on care and maintenance and is considered to have been well maintained and had a reliable operating history.
The plant was designed and built by GR Engineering Services Limited, which is the awarded engineering, procurement and construction contractor for Abra’s process plant, in 2008 as part of its contract to supply the 1 million tonnes per annum Higginsville treatment plant.
Its technical specifications exceed the requirements of Abra’s bankable/definitive feasibility study.
The study showed a mine and processing facility with a 16-year life producing of high-value, high-grade lead-silver concentrate containing around 95,000 tonnes of lead and 805,000 ounces of silver per year after ramp-up.
Galena's shares are up more than 5% to 19.5 cents.