Caspin Resources (ASX:CPN) has executed an exclusivity agreement with privately held Weethalle Gold, with a six-month option to earn-in 80% of the Weethalle Gold Project in New South Wales.
The Weethalle Project, comprising three granted exploration leases over a 310km2 area, sits along strike the Bygoo Tin Project in the Central Lachlan Fold Belt of New South Wales.
As part of the transaction, Caspin will pay $50,000 cash and 1 million shares and 500,000 options exercisable at $0.10, expiring on 31 December 2026, to Weethalle Gold.
During stage one of the earn-in, Caspin will pay an additional $100,000 and spend a minimum of $1 million in expenditure by 30 September 2027.
Once the minimum expenditure has been met, Caspin may elect to acquire a 51% interest by paying a further $200,000 cash, as well as issue 2 million shares and 2 million options.
During the stage two options, Caspin will make a deferred payment of $200,000 and spend a minimum of $3 million by 30 September 2029 including a minimum of $500,000 on exploration outside the Euratha area.
Once the minimum expenditure has been met, Caspin may elect to increase its stake in the project to 80% by issuing 4 million shares and 2 million options, with a two-year expiry date.
Managing Director Greg Miles says the Weethalle Project is one of the most “exciting” greenfield projects in Australia.
“There is compelling evidence across multiple datasets that Weethalle could host a large intrusive related gold deposit,” Miles says.
“The prize is big. This type of system hosts some of the world’s largest gold deposits.
“Whilst Caspin’s priority focus remains on Bygoo where a maiden high-grade tin JORC resource and exploration target has been established, the addition of the Weethalle Gold Project provides our shareholders with immediate exposure to record-high gold prices.”
Caspin intends to conduct drilling in the coming weeks at Weethalle to test the coincident induced polarisation and geochemical anomalies.
The company notes this provides the opportunity to drill a new target while drilling programs are still being prepared at the Kelpie tin deposit.
Caspin Resources is a diversified mineral explorer focused on the discovery and development of its three Australian projects – Bygoo, Yarawinda, and Mount Squires.
Write to Aaliyah Rogan at Mining.com.au
Images: Caspin Resources
