Business
Alacer Gold announces sale of Australian business unit
TORONTO , Sept. 23, 2013 /CNW/ - Alacer Gold Corp. ( "Alacer" ) [TSX: ASR and ASX: ...
About this update from Allied Strategic Resources Corp
[{"type":"text","content":"\n\n\nTORONTO, Sept. 23, 2013 /CNW/ - Alacer Gold Corp. (\"Alacer\") [TSX: ASR and ASX: AQG] announced today that it has entered into a binding agreement to sell its\n Australian Business Unit (which includes the Higginsville and South\n Kalgoorlie Operations) to a subsidiary of Metals X Limited (\"Metals X\"), an Australian public company with shares listed on the ASX (ASX: MLX).\n\n\nUnder the terms of the share sale agreement, Alacer will be paid A$40\n million in cash (subject to working capital adjustments) at completion\n for all of the shares of Alacer Gold Pty Ltd (\"Alacer Australia\"), its wholly-owned subsidiary.  Completion of the sale is conditional\n on and will occur within five business days following receipt of\n Australian Foreign Investment Review Board (\"FIRB\") approval by Metals X.\n\n\nMetals X has paid Alacer a A$10 million deposit (non-refundable except\n if FIRB approval is not obtained), which will be held in escrow pending\n completion of the sale.  The share sale agreement includes customary\n negotiated terms and conditions.\n\n\nIn addition to the A$40 million of cash consideration, Alacer will:\n\n\nRetain the right to receive up to A$2 million of deferred cash payable\n from La Mancha Resources Australia Pty Ltd for the acquisition of\n Alacer's 49% interest in Frog's Leg in April 2013;\n\nReceive any refund (estimated by Alacer to be up to A$21 million) in\n respect of an objection previously lodged to a Western Australian stamp\n duty assessment paid in connection with the merger that resulted in the\n formation of Alacer in 2011;\n\nRetain ownership of certain long lead items acquired in advance of the\n South Kalgoorlie Expansion Project, which have a book value of A$7\n million; and\n\nNo longer recognize in its financial statements A$46 million of mine\n closure provisions in relation to Alacer Australia.\n\n\nAlacer will continue to execute its cash maximization strategy as\n announced on 13 August 2013 at both the Higginsville and South\n Kalgoorlie Operations until completion of the sale.  Metals X will take\n economic ownership of Alacer Australia from 1 October 2013 (subject to\n completion) and will fund any additional working capital requirements\n or capital expenditures outside of the cash maximization strategy plan\n prior to completion.\n\n\nAll of Alacer Aus...