Lihir Gold Limited

Lihir Gold Limited

March 05, 2010 00:01 ET

LGL Enters Ballarat Sale Agreement

PORT MORESBY, PAPUA NEW GUINEA--(Marketwire - March 5, 2010) - Lihir Gold Ltd (LGL) (TSX:LGG)(NASDAQ:LIHR)(ASX:LGL) has entered into an agreement with Castlemaine Goldfields Limited for the sale of the Ballarat project in Victoria.

LGL will receive A$4.5 million in cash plus an additional 2.5% royalty interest* in future production, capped at A$50 million. The sale is subject to certain conditions including Castlemaine shareholders approving the issue of new equity to raise a minimum of A$20 million.

Castlemaine has indicated it intends to take the Ballarat operation forward as an exploration project, and will therefore cease mining and processing for the immediate future.

In preparation for the transition to new ownership, the operation will be wound down and placed on care and maintenance from today. Redundancies will be offered to affected employees. LGL will provide full entitlements and support services to employees and their families, including outplacement assistance.

* Calculated on Net Smelter Return

ARBN 069 803 998

Contact Information

  • Media: Lihir Gold Limited
    Josie Brophy
    Corporate Communications Manager
    07 3318 3317 or 0448 177 502
    Investors: Lihir Gold Limited
    Joel Forwood
    Manager Investor Relations
    07 3318 3331 or 0438 576 879
    Lihir Gold Limited
    Cheryl A. Martin
    North American Investor Relations