Albion Resources (ASX:ALB) has entered a binding option agreement to acquire the Gidgee Gold Project in Western Australia.
The option agreement requires Albion to pay an option fee of $10,000 within two days of execution of the agreement, which may be executed within 60 days.
In order to acquire the asset, Albion will pay $90,000 chase at settlement and $150,000 in shares, issued at the 20-day volume weighted average price.
Albion will also pay $50,000 in deferred shares upon returning a JORC-compliant resource of at least 10,000 ounces of gold @ 0.5 grams per tonne, with an average grade of over 1g/t gold within two years.
CEO Peter Goh says the Gidgee Gold Project is a capital-efficient opportunity for the company to secure a known gold system in Western Australia.
“Importantly, the project hosts significant historical drill intercepts at German Well, together with multiple walk-up drill targets that have seen limited modern exploration,” Goh says.
“The option structure provides Albion with the ability to complete detailed technical, heritage, and access due diligence before committing further capital.
“This approach is consistent with Albion’s strategy of selectively building a pipeline of high-quality exploration opportunities, while progressing our core Yandal West Project and continuing to evaluate additional opportunities across the portfolio.”
The German Well South prospect has returned drilling intersections such as 21m @ 5.4 grams per tonne gold from 118m, including 1m @ 37.1g/t gold, 16m @ 5.52g/t gold from 41m, including 1m @ 60.9g/t gold, and 8m @ 2.9g/t gold from 67m.
Albion Resources is a mineral explorer focused on discovering “high-grade” base metal and gold projects in Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Albion Resources
