Gateway Mining (ASX:GML) has sold its shareholding in Strickland Metals (ASX:STK) through an off-market transaction worth $840,000 to support exploration at its Montague Project in Western Australia.
The company sold the share parcel at $0.042 per share, representing a premium to the last closing price of Strickland Metals shares of $0.04.
Gateway says the shares were originally acquired through the divestment of its former Bryah Basin tenements in 2022, with a value of $400,000 at the time of that transaction.
The company says it will use the proceeds from the share sale for ongoing exploration activities at its Montague Project
The company says it will use the proceeds from the share sale for ongoing exploration activities at its Montague Project, including a new phase of drilling, which has recently begun. This drilling is aimed to uncover ‘step-change’ discoveries within Montague, alongside growing its existing mineral resource base.
Gateway says this is consistent with its strategy of crystallising value from its investments at appropriate times while maintaining a core focus on gold exploration at the Montague Project.
The company notes the proceeds will also be used for general working capital.
The Montague Gold Project is located about 70km north of Sandstone in Western Australia and comprises a consolidated area of about 1,000km-square covering the southern extension of the Archaean-aged Gum Creek greenstone belt.
Gateway Mining is an Australian gold company conducting a ‘super-charged’ exploration program across its Montague Project.
As of the end of the March quarter of 2023, the company had $2.104 million in cash reserves, according to its latest quarterly report published on 27 April 2023. Gateway has an $11.98 million market capitalisation.
Write to Aaliyah Rogan at Mining.com.au
Images: Gateway Mining Ltd