Third time Eldorado Mine sold

GYMPIE Eldorado Mine is now officially in the hands of an overseas company.

The century-old mine has been sold by Australian mineral resources explorer Fe Limited to a private Singapore registered minings and metals trading group.

It's one of many changes the mine has seen in recent years, including when parent company Gympie Eldorado Goldmine Ltd went into receivership in 2004.

While under the ownership of Buka Ltd, operations at the mine were scaled back in 2008 and assets were sold in 2010.

Through the sale of its wholly owned subsidiary Gympie Eldorado Mining Pty Ltd, Fe Limited will receive around $2.4 million.

That price will include both the sale and the reimbursement of environmental performance bonds.

Fe announced yesterday that it would also retain a 3% Net Smelter Return royalty from gold derived from the Gympie Eldorado Mine and that would include any processing tailings.

It announced it would also receive 10% of profits from any future sale of freehold land at Monkland, which comprises the Gympie Eldorado Gold Mine Tailings Site.

Fe executive director Mark Gwynne said the sale was an excellent result for the company and was part of its strategy to divest non-core assets.

"We look forward to the receipt of our environmental performance bond which will provide us with cash to focus our exploration efforts on our Mt Ida Iron Ore Project in the Yilgarn region of Western Australia," Mr Gwynne said.

Gold sold

EQUIPMENT for the Monkland Gympie Eldorado Mine site was sold by Buka Gold in 2010.

The equipment, included the plant, head frames and winders.

News broke in August 2013 that Fe Limited was going to sell the mine to the Singapore company.

The sale covered mining leases that contain three tailings storage facilities covering about 22ha and associated remaining assets and infrastructure at the mine, which was closed in late 2008.

Topics:  mining

Gympie Times

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