BMA Gold to buy Rishton plant from SMC Gold19:43, Thursday, 23...

BMA Gold to buy Rishton plant from SMC Gold
19:43, Thursday, 23 December 2004

Sydney - Thursday - Dec 23: (RWE Australian Business News) -
BMA Gold Ltd has agreed to buy a 500,000 tpa operating gold plant at the
Rishton goldmine at Charters Towers from SMC Gold Ltd for $2.75 million.
The agreement gives BMA the right to operate the plant where it
stands for a period of up to three years, and to dispose of tailings in
existing facilities at Rishton.
"Acquisition of the Rishton facilities is an important step for
BMA, enabling a low capital cost and fast-track access to the
considerable free cash flows that will be generated from high-grade gold
production.
"First gold production is scheduled by the end of the September
2005 quarter," directors said.
BMA has also agreed to buy an M2D Atlas Copco Twin Boom Jumbo,
an R1700 Hastings Deering Loader and some mine facilities for a further
$850,000.
The company will use this equipment to develop the high-grade
309 Deposit at Twin Hills with the start currently scheduled for the end
of March 2005.
The Rishton plant will be acquired with a sub-lease to operate
the plant for three years.
SMC has an option to repurchase the Rishton plant for $2.75
million at the end of the three-year sub-lease.
If SMC does not exercise its option, BMA must remove the plant
with any proceeds of sale accruing to BMA.
SMC retains the responsibility for all rehabilitation of the
leases with the exception of restricted area immediately around the
treatment plant.
On taking possession on April 30 2005, BMA will carry out some
modifications and refurbishment to ensure the plant can optimise
recoveries from Twin Hills ore.
The availability of a workforce experienced in operating the
plant is regarded by BMA as a significant advantage.
Meanwhile, SMC plans to transport certain mining equipment to
its operations in Chile and auction all remaining Charters Towers-based
plant and equipment during the second quarter 2005.
SMC is in continuing negotiations with a number of potential
farm-in partners regarding the company's exploration tenements and
mining leases at Charters Towers.
The announcement was made after trading closed.
Shares in BMA Gold and SMC Gold both rose 0.5c to 29c and 9c
respectively.

plus they have sold some other equipment for 850k to BMA