Doray offloads its company-making Andy Well gold mine for $10m
Mining & Resources
Junior gold and copper miner Doray Minerals will sell its Andy Well gold mine for $10 million to focus on its flagship Deflector operation in Western Australia.
The cash and shares deal with Canadian miner Galane Gold also includes a joint venture over Doray’s (ASX:DRM) nearby Gnaweeda Project, which has a current resource of 322,000oz, Doray said.
Doray was the best performing IPO of 2010 — rocketing from 20c to $1.40 – which was driven by strong exploration results at Andy Well.
Between 2013 and 2017, Andy Well – the company’s first operating mine — produced more than 300,000 ounces of gold.
It was put into care and maintenance in 2017 because the costs to extend the life of the underground mine were too high.
Doray recorded a $14.7m loss for the 2018 financial year – still a big improvement on the $74.2m loss in 2017 – and had $10.3m in cash at the end of June.
The Doray share price has recovered well over the past 12 months –from 18c to 35c – after a horror run which saw it plummet from highs of $1.19c in mid-2016.