Augustus Minerals (ASX:AUG) has executed a binding share purchase agreement to acquire privately held Music Well Gold Mines, which holds a contiguous tenement package covering 1,345km2 in Western Australia.
The Music Well Gold Project lies 35km north of Leonora in the Leonora-Laverton Greenstone Belt. The region hosts a gold endowment of more than 12 million ounces and 450,000 ounces of annual production.
Under the agreement with MCA Nominees, Augustus, which has a market capitalisation of $7.64 million, will pay a $75,000 cash deposit to MCA.
On completion of the deal, the company has also agreed to pay $200,000 cash to MCA.
Augustus must complete due diligence on the project and Music Well Gold Mines to its satisfaction. In conjunction, MCA is required to deliver Augustus evidence that extensions for the terms of three exploration licences have been duly applied for in accordance with the mining act.
General Manager of Exploration Andrew Ford says this acquisition provides exposure to future discoveries in “one of the greatest gold provinces in the world”.
“The acquisition of such a large prospective gold exploration package in close proximity to operating mines owned by Northern Star (ASX:NST), Genesis Minerals (ASX:GMD), and Vault Minerals (ASX:VAU) with +12 million ounces of resources and over 450,000 ounces per year gold production is a significant coup for Augustus,” Ford says.
Extensive geophysics, gravity, soil sampling, and rock chipping have already been completed with data validation and target prioritisation currently underway.
The Music Well Gold Project comprises 10 granted licences covering 1,052km2 and two licence applications covering a further 293km2.
Augustus believes that adding a gold-focused exploration project provides optionality and complements its existing copper, base metals, and uranium focus at the Ti Tree Shear Project in the Gascoyne region of Western Australia.
Augustus Minerals is a mineral explorer focused on its two projects prospective for gold and critical minerals in Western Australia. The Ti Tree Project covers 3,600km2.
Write to Aaliyah Rogan at Mining.com.au
Images: Augustus Minerals
