HopgoodGanim has advised Volga Elderberry Pty Limited on the sale of the Lorena Gold Project in North West Queensland to ASX-listed Malachite Resources Limited.
The consideration paid by Malachite for the acquisition is 350 million Malachite shares, priced at six cents each, a total value of AUD$21 million.
According to Partner Michael Hansel, who led the HopgoodGanim team advising on the sale, near production gold projects are highly sought after as a result of dramatic increase in gold prices.
"As a result of the share issue, the sellers of Volga Elderberry now have a 66 percent shareholding in Malachite Resources.
"The two parties took a collaborative approach to this transaction, and worked together closely throughout the sale process to negotiate and complete the deal within a short time frame."
The sale will allow Malachite to fast-track the commercial exploitation of the Lorena Gold Project.
Contact:
Esther Cohen, Communications Advisor
Tel: 07 3024 0192
