TORONTO, July 27,
2022 /CNW/ - Karora Resources Inc. (TSX: KRR) (OTCQX:
KRRGF) ("Karora" or the "Corporation") is pleased to announce
that it has closed the acquisition of the operating, fully
permitted 1.0 Mtpa Lakewood Mill gold processing facility located
near Kalgoorlie, Western
Australia, approximately 60 kilometres from the Beta Hunt
Mine. The acquisition price of A$80
million, which is subject to customary adjustments for
working capital and other items, is comprised of A$70 million in cash and A$10 million in Karora shares. Karora has
successfully tolled Beta Hunt material through the Lakewood mill,
achieving 94% Au recovery. The A$10
million share portion of the consideration due to seller was
satisfied by the issuance of 2.1 million shares of Karora, which
shares will be subject to a customary hold period under applicable
securities laws and other contractual restrictions.
Paul Andre Huet, Chairman &
CEO, commented: "Closing the acquisition of the Lakewood Mill is an
important transformational step forward for Karora and provides
several immediate strategic and operating benefits to Karora.
The addition of the Lakewood mill increases our current nominal
processing capacity to approximately 2.6 Mtpa (1.6 Mtpa at
Higginsville and 1.0 Mtpa at Lakewood) and significantly de-risks
our growth plan to increase gold production to between 185,000 and
205,000 ounces by 2024, by eliminating the procurement, schedule
and construction risks associated with a major expansion of
Karora's Higginsville Mill.
In the near term, the additional processing capacity provides
the opportunity for toll milling arrangements at one or both of the
Higginsville Mill and Lakewood Mill, until the Beta Hunt Mine
capacity expansion to 2 Mtpa is completed. We have also begun to
evaluate mill optimization opportunities to maximize the
efficiencies across both mills as a single, significantly de-risked
business.
The expansion to double production from Beta Hunt to 2 Mtpa is
advancing very well and, as previously announced (see Karora news
release dated May 24, 2022), the
development of the second decline is tracking ahead of schedule and
on budget."
About Karora Resources
Karora is focused on increasing gold production to a targeted
range of 185,000-205,000 ounces by 2024 at its integrated Beta Hunt
Gold Mine and Higginsville Gold Operations ("HGO") in Western Australia. The Higginsville treatment
facility is a low-cost 1.6 Mtpa processing plant, which is fed at
capacity from Karora's underground Beta Hunt mine and Higginsville
mines. Karora recently acquired the 1.0 Mtpa Lakewood Mill in
Western Australia. At Beta Hunt, a
robust gold Mineral Resource and Reserve are hosted in multiple
gold shears, with gold intersections along a 4 km strike length
remaining open in multiple directions. HGO has a substantial
Mineral gold Resource and Reserve and prospective land package
totaling approximately 1,900 square kilometers. The Corporation
also owns the high grade Spargos Reward project, which came into
production in 2021. Karora has a strong Board and management team
focused on delivering shareholder value and responsible mining, as
demonstrated by Karora's commitment to reducing emissions across
its operations. Karora's common shares trade on the TSX under the
symbol KRR and also trade on the OTCQX market under the symbol
KRRGF.
Cautionary Statement Concerning
Forward-Looking Statements
This news release contains "forward-looking information"
including without limitation statements relating to the Karora's
production guidance, the de-risking of Karora's growth plan, the
anticipated benefits of the Lakewood Mill gold processing facility,
the expansion to double production from the Beta Hunt Mine, the use
of toll milling arrangements at one or both of the Higginsville
Mill and Lakewood Mill gold processing facility, the potential of
the Beta Hunt Mine, Higginsville Gold Operation, the Aquarius
Project and the Spargos Gold Project and the commencement of mining
at the Spargos Gold Project.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Karora to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Factors that could
affect the outcome include, among others: future prices and the
supply of metals; the results of drilling; inability to raise the
money necessary to incur the expenditures required to retain and
advance the properties; environmental liabilities (known and
unknown); general business, economic, competitive, political and
social uncertainties; results of exploration programs; accidents,
labour disputes and other risks of the mining industry; political
instability, terrorism, insurrection or war; or delays in obtaining
governmental approvals, projected cash operating costs, failure to
obtain regulatory or shareholder approvals. For a more detailed
discussion of such risks and other factors that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements, refer to Karora 's filings with
Canadian securities regulators, including the most recent Annual
Information Form, available on SEDAR at www.sedar.com.
Although Karora has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date
of this news release and Karora disclaims any obligation to update
any forward-looking statements, whether as a result of new
information, future events or results or otherwise, except as
required by applicable securities laws.
www.karoraresources.com
SOURCE Karora Resources Inc.