ASX-listed Macmahon Holdings has, following market speculation, confirmed it is in discussions with GBF Underground Mining Co (GBF) in relation to a potential acquisition of the contractor.
Macmahon said it has not yet agreed terms or entered into binding purchase documentation for any acquisition, but did say, if acquisition terms are agreed, any consideration would be payable through cash and debt facilities.
“Macmahon will provide a further update if binding arrangements are entered into in relation to GBF,” it said.
GBF was founded in 1988 in the Western Australian Goldfields as a locally-owned and operated private underground mining contractor and continues to have a strong presence in the Western Australian Goldfields.
GBF has worked on a number of projects in the region, including Doray Minerals’ Andy Well project, Gold Fields Australia’s Belleisle mine (part of St Ives), Newcrest Mining’s Mount Marion mine and LaMancha Resources’ Frogs Legs project.
Shortly after this announcement, Orminex, which has a strategic alliance with GBF under the Mineral Ventures Model, came out with its own statement.
The Mineral Ventures Model the two companies are involved in provides capital and mining service solutions to suitable near-term production gold projects. The two are currently developing the Comet Vale mine, have recently acquired the high-grade Penny’s Find gold mine near Kalgoorlie, Western Australia, and continue to assess a number of other potential mineral venture opportunities, Orminex said.
Orminex Executive Chairman, Daryl Henthorn, said GBF had already advised Orminex that the operation of the strategic alliance will continue, irrespective of whether a transaction is finalised in relation to GBF. “It’s business as normal,” he said.