ONE of Australia’s largest gold and antimony mines that just happens to be in the New England is being offered for sale.
Straits Resources owns the Hillgrove Antimony Mine near Armidale and is seeking to sell it off to Bracken Resources.
The company was in talks with a number of companies to buy the mine, including Western Australia-based Emu Nickel, but is understood the plans fell through.
The mine is currently on care and maintenance and was anticipated to be back in production by mid-next year by Emu Nickel, which would have purchased it for $40 million.
Now Bracken has its sights on the mine.
Straits Resources have agreed to enter a short-term, exclusive arrangement with the company, under which Bracken will have the right to complete its due diligence with a view to acquiring the mine in 90 days.
It is understood Bracken will pay non-refundable option fees of $1 million immediately, followed by another $1 million after 45 days and $1 million on exercise, to continue the review.
Bracken will have the option to purchase the mine for $27 million cash, plus a replacement of $4 million in bonds, in addition to the option of fee payments.