St Barbara has agreed to sell its Southern Cross operations to China’s Hanking Gold Mining for $22.5 million.

The sale to Hanking, a subsidiary of China Hanking Holdings, will be subject to various third party and Australian government approvals including the Foreign Investment Review Board (FIRB).

The Southern Cross Operations ceased mining and processing operations during the December quarter, and had subsequently been placed onto care and maintenance.

The sale includes all mine and related assets located at Southern Cross, including the Marvel Loch underground mine.

Completion of the sale and settlement is expected by late February/early March.