Gold Road Resources has ended discussions with Orion Resource Partners, a global alternative investment firm, to acquire its 40 per cent stake in the Greenstone Gold Mines.
The announcement comes a week after Gold Road responded to media speculation that it would acquire a substantial interest in the operation.
The Greenstone Gold Mines are located in Ontario, Canada and is currently held in a joint partnership between Canadian-based Equinox Gold, who owns 60 per cent, and Orion Resource Partners, who holds the balance and is looking to divest its stake.
“As previously stated, Gold Road continues to evaluate strategic opportunities as part of a considered and diligent growth strategy,” Gold Road said in an ASX statement on Tuesday.
“The company will only pursue these opportunities on terms and at values which it believes are in the best interests of its shareholders.”
Orion Resource Partners is reportedly seeking a valuation of more than $1 billion for its Greenstone stake.
The Greenstone project has an expected mine life of 15 years, over which it has been tipped to produce over 400,000 ounces (oz) of gold per year. Production is anticipated to begin this year.
Despite ending its talks with Orion Resource Partners, Gold Road confirmed earlier this week that mining and processing operations at the Gruyere joint venture it shares with Gold Fields have resumed after a period of heavy rainfall.
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