Home / Media Release / MMG signs sale agreement for Avebury mine

MMG signs sale agreement for Avebury mine

  • Media Enquiries
    • Andrea Atell
      Group Manager Corporate Affairs
      T +613 9288 0758
      M +614 7683 0491
      E Andrea.Atell@mmg.com

    • Brent Walsh
      Group Manager Strategy and Investor Relations
      T +613 9284 4170
      M +614 3310 8120
      E Brent.Walsh@mmg.com

    • Maggie Qin
      Group Manager China Relations
      +613 9288 0818
      +61 4114 65468

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.

– Ends –