GBF Group, which has recently been acquired by Macmahon Holdings Limited (ASX:MAH), has received a conditional letter of intent from Silver Lake Resources (ASX:SLR) to continue work at its Mount Monger Gold operation. The deal is worth around $200 million.
Macmahon has been operating at Mount Monger since 2014 and also provides mining services to the Daisy Milano Complex, Cock-eyed Bob and Maxwells operations. GBF’s tenure will be extended until March 2023 as part of the intended deal.
Chief Executive Officer and Managing Director of Macmahon Michael Finnegan was pleased to receive the letter from Silver Lake “The new work is an important milestone in our strategy to further expand in the underground market, and demonstrates the value in our GBF acquisition” he said.
The Silver Lake Macmahon relationship will further be entrenched with the new Santa mine starting development in March 2020. The negotiation and finalisation of the deal is expected to be completed in March.