Kalgoorlie Mining Company (ASX: KMC) has positioned itself to receive cash flows in the short term, after securing a ore purchase agreement with Australian subsidiary of Barrick Gold Corporation (NYSE: ABX).
Kalgoorlie Mining will truck the gold ore from the company's Bullant Gold Mining Operations, with the opportunity for between 5,000 to 20,000 tonnes per month to Barrick's Kanowna Belle facilities for sale and processing.
The amount of monthly deliveries to Barrick will be dependent upon Kalgoorlie Mining’s mining rates and the economics of transporting the mined ore to the facility, over leaving the ore stockpiled for future processing at the company’s own gold processing facility which is forecast to be in operation in 2012.
The major plus for Kalgoorlie Mining is the ore from Bullant was previously processed by Barrick when Barrick owned the mine.
The first ore delivery and sale to Kanowna Belle in expected in the coming month.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/18442/kalgoorlie-mining-company-unlocks-cash-flow-potential-in-ore-agreement-with-barrick-18442.html
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