MMG signs sale agreement for Avebury mine

28 Sep 2016 01:00 PMMedia Release

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MMG Limited (MMG) has today entered into a share sale agreement with Dundas Mining for the purchase of its Avebury nickel mine, currently on care and maintenance, for a total consideration of A$25 million.

The consideration comprises a deposit of A$1.5 million payable on signing and A$23.5 million payable on completion.

Dundas Mining is a privately owned exploration and mining development company based in Tasmania.

The Avebury mine has been on care and maintenance since 2009. Following an internal review, MMG initiated an expression of interest process for the asset and believes that this transaction provides the best opportunity to restart the mine.

The sale is subject to a number of conditions precedent including MMG Board approval. The sale agreement will be finalised only when the full payment is received and various approvals normal for such a transaction are obtained. MMG will work with Dundas Mining to satisfy all conditions and expects completion of the sale by the end of the year.

General Manager – Australian Operations, Rick Watsford said that MMG believes this offer represents the best outcome for both MMG and the Avebury asset.

“Dundas Mining is committed to a restart of the mine and MMG is confident that the sale will reinvigorate the Zeehan area, by providing new jobs and economic benefit to the region,” Mr Watsford said.

 

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