Whim Creek Consolidated, acting on behalf of a consortium, has signed a deal with C.R.A. Ltd., to purchase all the shares of Forrest Bay Pty. for $76.5 million. Members of the consortium include Austwhim Resources (29%), Croesus Mining (27%) and Whim Creek (44%).
Forrest Gold’s main assets include two mines producing a total of 37,000 oz of gold per year in Australia. The two mines, Hannans South and Tower Hill, will be owned by Croesus and Austwhim respectively. Whim Creek will acquire the Labouchere property, which is in the feasibility stage.
Discussions are also under way with affiliate company Ennex International with the objective of having Ennex participate as to a 20% interest in the Tower Hill mine and properties.
Whim Creek forecasts gold production from Labouchere at a rate of 35,000 oz per year by 1988. Committed to building a new 700,000 tonne-per-year treatment facility at its Meekathera mining operations, Whim Creek will consider relocating its existing Haveluck mill to Labouchere. This added production is expected to give Whim Creek gold output of more than 100,000 oz per year by 1988.
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