Perseus Mining agrees $372m sale of Meyas Sand project in Sudan
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The news: Gold producer Perseus Mining has signed a share purchase agreement (SPA) to sell its 70% group interest in the Meyas Sand project in Sudan to Hong Kong Matrix Golden Fortune Mining, a wholly owned subsidiary of Matrix Resources, for USD260 million ($372 million).
The numbers: The purchase price comprises a USD10 million deposit received on signing of the SPA and USD250 million payable on completion of the transaction, which is expected on 22 April.
The context: The project has been sold on as “as is, where is” basis, subject to customary representations and warranties.
The ultimate parent of Matrix Resources is Zhejiang Lygend Investment, a diversified mid-tier mining operator with investment holdings in Indonesia.
Perseus originally acquired the Myas Sand project (MSGP) through the purchase of Orca Gold in May 2022.
The sale comes after a lengthy review of the MSGP which included consideration of both development and divestment options. Perseus concluded that divestment of the project would allow for the re-allocation of internal resources to its internal development opportunities.
Proceeds will go towards strengthening the miner’s balance sheet along with “consideration of additional capital returns to shareholders”.
What they said: “A strategic review of MSGP was undertaken as a result of the protracted armed conflict in Sudan and its impact on Perseus’ ability to progress the development at suitable scale,” said Perseus CEO Craig Jones.
The source: ASX
