Evolution Mining is in talks to buy Egyptian billionaire's gold mine in Kalgoorlie as it looks to take advantage of weak prices.
Evolution said discussions were taking place with the Naguib Sawiris' private company La Mancha Resources regarding the Frog's Leg Gold Mine.
Mr Sawiris, whose business interests are more geared towards telecommunications in the Middle East, paid nearly $500 million for La Mancha in 2012 for an exposure to gold.
The 60-year-old's net worth is more than $US3 billion, according to Forbes Magazine, placing him number 10 on a list of Africa's 50 richest people.
Evolution chairman Jake Klein signalled an enthusiasm for acquisitions in Febuary and told a Hong Kong mining conference this week that assets were cheap, and as much as half of Australia's gold output could change hands in the next two years.
Gold prices are flat in 2015, hovering around $US1200 an ounce, and down $US100 from a year ago.
The underground Frog's Leg mine produces about 130,000 ounces a year, with a potential asking price of $400 million.
A sale would also involve the 35,000 ounce a year White Foil open pit mine and 1.7 million tonne a year Mungari processing plant.
"There is no certainty that these discussions will lead to a transaction," Evolution said in a statement.
Evolution has five producing gold mines in Western Australia and Queensland, forecasting production of 400,000 to 440,000 ounces in the 2014/15 financial year.
Evolution's shares were flat at 85 cents at 1400 AEDT.
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