PERTH-based company Regis Resources has announced it will pay $150 million to acquire the McPhillamys Gold Project near Kings Plains - a development which would cement the Blayney Shire as the mining capital of the central west.
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The company is confident there will be a functioning mine on the site, which has a gold resource of 2.5 million ounces, within the next 10 years.
Regis struck the deal to buy the McPhillamys project from joint venture partners Newmont Mining and Alkane Resources last week.
The company's managing director Mark Clark said the project is in its early stages but the future is looking bright.
"Whilst there is a lot of work to do over the next three years - including a resource drill out, reserve study, technical and logistical studies and a definitive feasibility study - Regis is confident that this work will ultimately confirm the viability of a significant gold mining operation at McPhillamys," he said.
The McPhillamys project is Regis' first investment in mining in NSW.
In explaining why it's selling its stake in the project, Alkane said the joint venture structured ownership was not ideal and that 100 per cent ownership of the McPhillamys project would be more ideal.
A Regis' spokesperson told the Blayney Chronicle the McPhillamys project had stalled under conditions of the joint venture.
Regis' acquisition of the joint venture is subject to the satisfying of several conditions within 90 days.They include gaining ministerial approval for renewal and transfer of exploration licences and shareholder consent to issue shares to Alkane Resources and Newmont Exploration.
Regis must also seek project finance approval.
