Placer Pacific gets Australian prospect

In a package deal that involves two separate agreements, Placer Pacific, a subsidiary of Placer Dome (TSE), has acquired a potential gold producer in Western Australia and a number of other properties in the country. The total purchase price will be approximately $50 million(A).

Placer Pacific has concluded agreements with CSR Ltd. and Delta Gold to purchase CSR’s 60% interest in the Granny Smith property near Laverton in Western Australia; 40 other properties held by CSR are included in the deal. Delta will purchase a 25% interest in the Granny Smith, bringing its interest to 40%. When that purchase is completed, Placer Pacific and Delta will joint venture the property.

The purchase by Placer Pacific should be completed later this month. But certain properties are subject to pre-emptive rights of third parties which Placer Pacific says “may result in delay of purchases of those properties or, if exercised, adjustment of Placer Pacific’s purchase price.”

The Granny Smith property hosts three deposits with drill-indicated geological reserves of 10.8 million tons grading 0.069 oz gold. Placer Pacific has agreed to deliver a feasibility study to Delta by June 30, 1989. However, before initiating the study, Placer Pacific will be mounting a major drilling program, all of which will be funded at its own expense.