Perth-based gold miner View Resources Ltd has announced it will sell its 30 per cent stake in the Carnilya Hill Nickel Project to joint venture partner Mincor Resources NL in a package totalling $25 million.
The deal will give the nickel miner 100 per cent ownership of the mine and see View become completely debt free, enabling it to focus on its flagship Bronzewing Gold Project in the northern goldfields.
In other news today, View shareholders voted in favour of ratifying the issue of 53 million new shares, raising $10.6 million, at the company's general meeting in Perth.
The company received support for the placement in early November, providing short term contingency funding for its Bronzewing mine.
View managing director Tim Gooch said the Carnilya sale was a very good outcome for View, particularly as the gold price continued to climb to record highs with the company completely unhedged.
"We are looking to focus the future growth of the company on our 100 per cent owned Bronzewing gold mine, which produced 10,300 oz in December 2007," he said.
The key terms of the sale include $22.5 million cash; up to $2.5 million in future nickel royalties at Carnilya Hill beyond the current 14,000 tonnes reserve and subject to conditions; and Mincor to earn an immediate 70 per cent interest in the nickel rights over all of View's Bronzewing tenements by spending $1million on exploration there.
A major extension to the Carnilya Hill ore body, located in the Kambalda Nickel District, was discovered by Mincor during 2006 and development of a 15,000 tonne per month nickel operation commenced in July 2007.
Carnilya Hill has about 14,000 tonnes of nickel metal reserves and first ore is expected to be mined this month.
"Carnilya Hill has been a very good and marketable asset for View and one which has served this Company well over the past few years. However, as an asset which we had only 30 per cent of, it was for sale at the right time for the right price," Mr Gooch added.
View will immediately pay off the remaining debt facility provided by its bankers of $14 million, becoming totally debt free.
The additional funds will be used to scale up the Bronzewing exploration programme as well as provide contingency and working capital for future growth.
