following MR Mustards post, this is massive news. Why ? KCN getting into Silver will start putting undervalued plays like us in the spot light. But with KCN director on our board, if they look to expand YES a buy in or take over is truly on the cards.
GOLD miner Kingsgate Consolidated will spend $75 million to acquire what it says will be a three to four million tonne a year silver mine in NSW.
Kingsgate said it had entered into an agreement to buy the Bowdens Silver Project, 240km west of Sydney, from a wholly-owned subsidiary of Silver Standard Resources.
The open-cut mine had the potential to have a minimum 10-year life, with a measured and indicated resource 79.5 million ounces of silver, and an additional inferred resource of 17.6 million oz, using a 40 gram a tonne silver equivalent cut-off grade, the company said.
Consideration for the acquisition includes $45 million in cash and $30 million in Kingsgate shares.
It follows the company buying a silver gold project through acquiring Lugana Resources, in Chile last year.
The company, which has a market cap of $1.2 billion, operates it's flagship project, the Chatree mine in Thailand.
ARD Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
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