This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Alacer Gold Announces Sale Of Australian Business Unit

Stocks in this article: ASR

TORONTO, 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 Australian Business Unit (which includes the Higginsville and South Kalgoorlie Operations) to a subsidiary of Metals X Limited (" Metals X"), an Australian public company with shares listed on the ASX ( ASX: MLX).

Under the terms of the share sale agreement, Alacer will be paid A$40 million in cash (subject to working capital adjustments) at completion for all of the shares of Alacer Gold Pty Ltd (" Alacer Australia"), its wholly-owned subsidiary.  Completion of the sale is conditional on and will occur within five business days following receipt of Australian Foreign Investment Review Board (" FIRB") approval by Metals X.

Metals X has paid Alacer a A$10 million deposit (non-refundable except if FIRB approval is not obtained), which will be held in escrow pending completion of the sale.  The share sale agreement includes customary negotiated terms and conditions.

In addition to the A$40 million of cash consideration, Alacer will:

  • Retain the right to receive up to A$2 million of deferred cash payable from La Mancha Resources Australia Pty Ltd for the acquisition of Alacer's 49% interest in Frog's Leg in April 2013;
  • Receive any refund (estimated by Alacer to be up to A$21 million) in respect of an objection previously lodged to a Western Australian stamp duty assessment paid in connection with the merger that resulted in the formation of Alacer in 2011;
  • Retain ownership of certain long lead items acquired in advance of the South Kalgoorlie Expansion Project, which have a book value of A$7 million; and
  • No longer recognize in its financial statements A$46 million of mine closure provisions in relation to Alacer Australia.

Alacer will continue to execute its cash maximization strategy as announced on 13 August 2013 at both the Higginsville and South Kalgoorlie Operations until completion of the sale.  Metals X will take economic ownership of Alacer Australia from 1 October 2013 (subject to completion) and will fund any additional working capital requirements or capital expenditures outside of the cash maximization strategy plan prior to completion.

All of Alacer Australia's subsidiaries (which together hold 100% interests in the Higginsville and South Kalgoorlie Operations) are included in the sale.  The sale does not require the approval of Alacer shareholders.

1 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs