ASX-listed TG Metals has signed a sale and purchase agreement to acquire an 80% interest in the Van Uden gold project in Western Australia from Montague Resources Australia. Barto Gold will retain a 20% equity interest in the project.

The Van Uden project is located on the Forrestania Greenstone Belt, about 90 km east-northeast of Hyden and 120 km south of Southern Cross. It is near the operating Marvel Loch gold processing plant and the Westonia-Edna May processing facility, which is currently under care and maintenance. 

The project is also 130 km from TG Metals' Burmeister lithium deposit at the Lake Johnston project, providing potential operational synergies.

TG Metals will fund the acquisition with an upfront cash payment of A$2.5-million and the issuance of 5 714 285 fully paid ordinary shares at a deemed issue price of $0.175 a share, representing a 67% premium to the company's closing price on February 28, 2025. These shares will be subject to a 12-month voluntary escrow period. A further deferred cash payment of A$0.5-million will be made either 12 months after the transaction’s completion or upon TG Metals completing an equity raising of at least A$1-million. The acquisition will be financed from the company's existing cash reserves, with no shareholder approval required.

“This strategic acquisition provides TG Metals with an advanced gold project with opportunities for near-term cash flow, at a time of record prices for gold. It is located very near to our existing Lake Johnston lithium deposits, which allows opportunities for operational synergies for both of TG’s projects. The Van Uden gold project has historically only been subject to shallow drilling, providing enormous exploration upside through testing the known mineralisation down dip along its entire plus 2 000 m strike length. There are several near-term high-priority opportunities, including defining a JORC 2012 mineral resource estimate (MRE) from the extensive historical database, and assessing the viability of existing ore stockpiles for toll treatment,” TG Metals CEO David Selfe stated.

The Van Uden gold project comprises four granted mining leases with historical production from two shallow openpits. The company sees strong exploration potential, with shallow mineralisation remaining open down-dip. Key priorities include completing a MRE based on historical drilling data and evaluating the potential for near-term cash flow from existing stockpiles. The project's proximity to toll treatment facilities enhances its economic prospects.