Crocodile Gold buys Stawell Gold Mine

Crocodile Gold, based in Canada but with mining interests in the Northern Territory, has bought the Stawell mine.

A deal between Crocodile Gold and AuRico Gold to buy all Northgate Minerals Corporation shares was agreed to on Wednesday but will not be finalised until May 1.

The price of the shares was $105 million in Canadian dollars.

The sale also means Crocodile Gold owns Fosterville Gold Mine near Bendigo.

Crocodile Gold president and chief executive Chantal Lavoie said the company was pleased to add Stawell and Fosterville to its portfolio of Australian assets, boosting its aim to become an intermediate Australian-based gold producer.

Stawell Gold Mine is the second largest gold producer in Victoria, behind Fosterville.

"We believe that significant synergies exist between the operations that should create additional value for Crocodile Gold and the shareholders,'' Mr Lavoie said.

"Very important to the transaction is the wealth of knowledge and technical expertise that Fosterville and Stawell's terms bring to Crocodile Gold.''

Northern Grampians Shire Council chief executive Justine Linley said the council welcomed the new operators of the gold mine.

"The council supports both the current and any new operators or owners of the Stawell Gold Mine,'' she said.

"We know the mine is a fantastic facility in our town and the council is keen to work with whoever is looking at working with the mine.''

Ms Linley said the gold mine had produced more than two million ounces of gold.

"We expect there's quite a bit more there,'' she said.

Crocodile Gold mines a number of open pits in the Howley Corridor, Northern Territory, and is developing the Cosmo underground mine.

The Stawell Gold Mine's modern operation spans 27 years. It produced its two-millionth ounce of gold in March, 2010.

AuRico Gold took over Stawell Gold Mine in October, after taking over Northgate Minerals.