Western Australian resources developer Stirling Resources (ASX: SRE) has completed the recapitalisation of Monarch Gold and will now move towards restarting operations immediately.
All Monarch shareholders will retain their full number of existing Monarch shares in the newly rebadged company Swan Gold Mining Limited.
The Company is aiming to reach full production in 12 months, with a target production rate of 100,000 ounces per year and will make immediate application to re-list on the ASX as Swan Gold Mining (ASX:SWA).
Stirling Resources Managing Director Michael Kiernan said the successful recapitalisation was a significant step towards production and cash flow for all shareholders.
“Today marks the rebirth of the Company as Swan Gold. This transaction has taken a considerable amount of work, but we have remain committed to delivering this outcome and we would like to acknowledge the Administrator Bryan Hughes for his cooperative approach throughout this period, and more particularly the support of new shareholders who have facilitated this milestone,” Mr Kiernan said.
“The completion of this transaction leaves Swan Gold well placed to move quickly into production, capitalise on the strong gold market and deliver value for shareholders,” he said.
Mr Kiernan said significant amount of planning work had already been undertaken during the past six months in readiness for production.
“Mining consultants SRK have been reviewing the Carnegie open pit mining plans for the Riverina, Sandking and
“It is anticipated that first mining will commence at Carnegie in four to six weeks, with a targeted production of 60,000 ounces per year.”
At Mt Ida, the Company is in negotiations for toll treatment of up to 40,000ozpa of ore at a third party mill. Swan Gold is aiming to commence Mt Ida operations in the June quarter.
Swan Gold has a Board and management team with significant gold experience in the Goldfields region.