WPG Resources Ltd Company Information
WPG Resources Ltd is an Australian ASX listed resource company (ASX code WPG) with a current focus on its Challenger joint venture and two 100%-owned advanced gold projects in South Australia.
WPG holds its gold projects through three wholly-owned subsidiaries – Challenger Gold Operations Pty Ltd, Tarcoola Gold Pty Ltd and Tunkillia Gold Pty Ltd. The company has 100% of all minerals at Tarcoola and Tunkillia. The Challenger gold mine will be operated in joint venture with Diversified Minerals Pty Ltd, an entity associated with the PYBAR Group, one of Australia’s pre-eminent and extremely successful underground mining contractors. WPG is the manager of the joint venture.
On 15 March 2016, WPG finalised the acquisition of the Challenger gold mine and associated South Australian exploration assets. The mine was placed on temporary suspension and a revised restart mine plan was developed. Site operations at the Challenger gold mine recommenced in late May 2016 with crushing and milling of low grade stockpiled ore followed by underground mining activities on schedule and under budget. The first gold was poured on 31 May 2016.
WPG then intends to bring Tarcoola into production in the second half of 2016.
Including its advanced gold projects WPG has a portfolio of exploration projects in South Australia covering a combined area of 7,343 square kilometres. These are considered to have excellent potential for the discovery of several types of mineral occurrences including gold, nickel, base metals, iron ore and coal.
The acquisition of the Tarcoola and Tunkillia gold projects in May 2014 marked the completion of WPG’s transition from an iron ore company to a gold focussed company.
WPG acquired its iron ore assets in 2006 for $4 million and sold them in October 2011 for $320 million – a seven-fold increase in the amount expended on the assets during that period.
WPG acquired the Tarcoola and Tunkillia gold assets for $2 million plus 17.5 million WPG shares with trailing payments contingent on mine development. The acquisition price was $2.69 per ounce of resource – a very competitive price.
WPG now owns all of the issued capital of Challenger Gold Operations Pty Ltd (CGO) (formerly a KCN subsidiary) and all of its assets. The purchase price of $1 million will be paid in four quarterly instalments with the first due within 30 days of the recommencement of milling operations at Challenger. The first payment will be offset by $100,000 being the amount already paid.
CGO owns the Challenger gold mine and exploration tenement package surrounding it, and the Barton West mineral sands project tenements in South Australia. Assets acquired include the open pits and underground mines, the CIL plant, camp, airstrip and all other relevant assets and infrastructure, as well as approximately $2.7 million of bonds lodged with the South Australian government.
Also acquired were a number of exploration tenements some of which are in joint venture with Tyranna Resources Limited for gold and Iron Road Limited for iron. Exploration programs will be continued for these tenements.