Global Uranium and Enrichment (ASX:GUE) has entered into a binding sale and purchase agreement with Koonenberry Gold (ASX:KNB) for the sale of the Enmore Gold Project in New South Wales, Australia.
The Enmore Project is located in the New England Fold Belt, 20km from the 1.7-million-ounce Hillgrove Gold-Antimony Mine.
Under the agreement, Koonenberry will issue 35 million shares to Global Uranium and is also required to conduct a $2 million capital raising and secure shareholder approval in November 2024.
Global Uranium, which has a market capitalisation of $21.25 million, says the proposed sale of Enmore aligns with its commitment to deliver its growth strategy in developing its North American uranium portfolio.
The sale also provides Global Uranium with exposure to a broader portfolio of gold assets. By retaining an equity position in Koonenberry, the company is positioning itself to benefit from the continued development of the Enmore Project, as well as Koonenberry’s other projects.
Managing Director Andrew Ferrier says this deal creates value for both parties, while also enabling Global Uranium to maintain a strategic focus on its core uranium assets, which have experienced rapid progress over the past year.
“We remain committed to driving the development of our uranium portfolio, executing on our busy 12-month work program,” Ferrier says.
Following today’s announcement, Koonenberry’s share price spiked 50% to $0.018, as of 2pm AEDT.
In parallel to this acquisition, Koonenberry is also acquiring the Lachlan Project in New South Wales from privately held Gilmore Metals.
The company will issue 95 million Koonenberry shares to Gilmore Metals. Once completed, Gilmore Metals co-founder and director Darren Glover will join the Koonenberry board of directors.
Koonenberry Managing Director Dan Power says the team is excited to add these highly prospective assets to its gold and copper exploration portfolio.
“The Enmore Gold Project has some exciting historical high-grade gold assays in drilling, rock chips and underground workings with clear targets, a well understood geological model and a near-term opportunity to rapidly advance with drilling,” Power says.
“The Lachlan Projects include strategic landholdings in the Lachlan Fold Belt with early-stage results across multiple targets. In addition, the Junee Project, in joint venture with a subsidiary of Newmont Corporation (ASX:NEM), has seen a significant amount of work already completed and is 20% free carried.”
Koonenberry Gold is a junior mineral explorer focused on the discovery of gold and copper in emerging geological terranes.
Global Uranium and Enrichment is an explorer and developer focused on the uranium space.
The company’s asset portfolio includes the Tallahassee, Athabasca Basin, Maybell, and Rattler uranium projects. All of the projects lie in Utah and Colorado, US, as well as Saskatchewan, Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: Global Uranium and Enrichment
