Owner of large, open-pit mines in Nova Scotia, sold to Australian firm

A large, open-pit gold operation located in the historic Nova Scotia mining district of Moose River has been sold to an Australian firm.

A news release issued earlier this week says St Barbara mining has acquired Atlantic Gold Corp., with plans to raise further capital for a possible listing on the Toronto Stock Exchange.

Shareholders are receiving $2.90 per share for a total equity value of $722 million under terms of the takeover.

The company has been mining gold in open pit operations at the Touquoy mine and has mapped out four deposits in some of the province's long-dormant underground gold districts.

The modern mines differ vastly from the underground shafts which once honeycombed the area, and made Moose River the world-famous site of a 1936 cave-in and rescue.

The Touquoy operation, just a 90-minute drive from Halifax, relies on huge volumes of ore going through mass crushing and leaching to draw out the tiny amounts of gold.