The Ballarat gold mine has been given a "rescue package", according to general manager Stephen Jeffers.
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The "stable but thriving" mine, part of Castlemaine Goldfields which has about 220 direct employees and contractors, is owned by LionGold, a Singapore-based gold mining and exploration company which bought the mine in 2011.
However, according to reports in the Financial Review, LionGold has been struggling, with a share price of S$0.001 after a collapse on the Singapore Exchange in 2013.
It's hoped the new investment, from Yaoo Capital, will stimulate exploration in Ballarat, which operates on razor-thin margins.
The company bought 72 per cent of shares in LionGold on Monday, with 99.9 per cent of shareholders voting in favour of the move. Yaoo Capital will pay about $20 million to take on the company's debts.
Mr Jeffers, speaking to The Courier from Singapore, said the announcement is positive for Ballarat.
He said there was "no risk of closing" because of the deal - good news for the 80 per cent of its employees which live in Ballarat.
"What it means is that (Yaoo Capital) have bought the debt, the parent company is debt-free, but these new investors want to recapitalise the mines, invest in exploration, equipment, people - I have a number of ideas how they can do that," he said.
"They see the value in the mine and they're looking forward to investing and expanding it."
The mine is currently producing about 40,000 ounces of gold each year, according to a shareholder presentation - minutes from the meeting reveal this is the minimum level of operation.
Mr Jeffers said discussions had been ongoing for some time, as LionGold struggled to pay heavy debts.
"Yesterday, a meeting with the existing shareholders of LionGold voted in favour of the deal in a huge majority," he said. "It's not a takeover, it's more a rescue package."
A press release noted the deal continued "the rich multicultural history of the Ballarat Goldfield".
He emphasised the company does pay tax in Australia.
"We're not like other mining companies or businesses that transfer things off overseas, we sell all our gold within Australia, we're straight up and down," he said in an interview last week.
The deal is expected to be finalised within the next few weeks.
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