Dreadnought Resources (ASX:DRE) has struck a deal with a private seller to acquire 100% of 2 tenements within its Bresnahan Project area in Western Australia.
The $174.68 million market capitalisation company says once complete, this acquisition will represent a ‘significant’ regional consolidation over a ‘highly prospective’ area, with the 2 tenements covering 20km-square.
The Bresnahan Project, which is prospective for heavy rare earth elements (HREE) and gold-silver-antimony (Au-Ag-Sb), is located 125km southwest of Newman in the Ashburton Basin. The acquisition consolidates Dreadnought’s landholding in the area to roughly 4,700km-square, covering over 200km of strike along the Basin/Wyloo Group unconformity.
The key terms of the agreement include Dreadnought paying a non-refundable deposit of $50,000, which has been paid, alongside a further $50,000 in cash upon the completion of the sale.
The vendor will also receive 2.5 million fully paid ordinary shares DRE at completion and 1% gross royalty payable.
The completion of the acquisition is expected to occur during this month.
Addressing the acquisition, Dreadnought Resources Managing Director Dean Tuck says: “The acquisition, when completed, closes a significant gap in our tenement position at Bresnahan. We already have a dominant position in the region, and we see these tenements as important to our long-term strategy for Bresnahan.
“We already have a dominant position in the region, and we see these tenements as important to our long-term strategy for Bresnahan”
We will be including existing and future targets on the tenements into our existing work programs in the region.”
Dreadnought Resources is a Western Australian-focused exploration company, with 4 projects providing a diverse mix of geological terrains and target commodities.
As of 30 June 2023, the company had $11.676 million cash and cash equivalents at hand, according to its latest quarterly report. On 29 September 2023, the company launched a placement and share purchase plan to raise $10 million.
Write to Aaliyah Rogan at Mining.com.au
Images: Dreadnought Resources