ASX-listed Leeuwin Metals has entered into a binding share sale agreement with fellow ASX-listed Ramelius Resources to acquire the Marda gold operations, in Western Australia, for up to A$2-million in cash and shares.
The Marda Operations include the highly prospective Marda gold project, which spans over 500 km² of granted mining, exploration and prospecting leases and hosts eight openpits and numerous historical workings, with significant exploration potential highlighted by multiple high-priority targets requiring immediate follow-up work.
“The acquisition of the Marda gold project is a pivotal step for Leeuwin Metals, delivering significant value with minimal dilution to shareholders. This advanced gold project in Western Australia provides an exciting growth platform with substantial exploration potential.
"Marda hosts extensive known mineralisation in and around existing pits. This mineralisation is open and represents low hanging fruit for our initial exploration campaign. There are also numerous drilling targets which have been defined by geophysics and limited drilling. There is immense upside at these targets, which we will prioritise as part of our resource growth strategy.
"The project’s strategic location, within trucking distance of multiple gold mills and supported by excellent infrastructure, further enhances its viability. With granted mining leases included in the acquisition, Leeuwin is well-positioned to rapidly progress discoveries into development," comments Leeuwin chairperson Christopher Piggott.
Leeuwin will pay Ramelius an upfront consideration of A$500 000 in shares.
This will be followed by a further cash payment of A$500 000 on the definition of a Joint Ore Reserve Committee- (Jorc-) compliant resource of 500 000 oz of gold within the project tenements; and a $1-million cash payment on definition of a Jorc-compliant resource of one-million ounces within the project tenements.
Leeuwin has also granted Ramelius the right to match any third-party ore processing proposal received by Leeuwin in relation to ore from the Marda tenements, valid for a 5-year term.
