HopgoodGanim advises Volga Elderberry on Lorena Gold Project sale

6 October 2010

HopgoodGanim has advised Volga Elderberry on the sale of the Lorena Gold Project in North West Queensland to ASX-listed Malachite Resources.

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.

Esther Cohen, Senior Communications Advisor
Tel: 07 3024 0192