Saracen buys Sinclair from Talisman for $10m
Saracen Mineral Holdings has snapped up Talisman Resources’ Sinclair nickel project for $10 million
4th October 2019
Resources Rising Stars
Saracen Mineral Holdings has snapped up Talisman Resources’ Sinclair nickel project for $10 million for its gold potential and existing infrastructure close to its Thunderbox operations near Leinster (reports The West Australian).
The Raleigh Finlayson-led miner described Sinclair’s 207sqkm tenement package as highly prospective yet underexplored immediately along strike from its 1.04 million ounce Bannockburn project.
The company also sees value in the project’s existing infrastructure which includes a 350,000tpa nickel processing plant, a 200-person camp airstrip and underground mine facilities.
The $10 million cash payment includes 2 per cent royalty payable on metal production from Sinclair and non-precious metals production from the Saracen-owned Waterloo nickel tenement.
Sinclair includes a resource of 16,200 tonnes of nickel.
Saracen is eyeing the potential for packaging up the two nickel assets and selling them “at the right time”.
For Talisman, the transaction provides immediate cash for an asset that comes with $2 million in annual holding costs and offers no near-term production scenario.
The deal will boost its cash reserves to $18 milliont o focus on its expanding exploration activities at the Lachlan copper-gold and Lucknow gold projects in New South Wales as well as potential acquisitions.
Discovered in October 2005 by the former Jubilee Mines, Sinclair produced 38,500 tonnes of nickel at 2.44 per cent between 2008 and 2013 before being placed on care and maintenance by then owner Glencore.
Talisman acquired the asset from Glencore in October 2014 for $8 million plus a deferred $2 million payment.
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