Great Boulder Resources (ASX:GBR) is divesting its Whiteheads Project in Western Australia to Hastings Technology Metals (ASX:HAS) via the acquisition of Great Western Gold.
Hastings has executed a conditional binding term sheet to acquire Great Western Gold, which will grant the suitor the right to acquire Great Boulder’s 75% joint venture interest in Whiteheads, located 80km north-east of Kalgoorlie in Western Australia’s Eastern Goldfields.
A further deferred $800,000 is payable in Hastings shares is linked to the reporting of certain mineral resource estimates (MREs) in accordance with the JORC Code, vesting progressively upon achieving MREs greater than 125,000 ounces, 250,000 ounces, and 1 million ounces of gold equivalent, a cut-off grade of at least 0.5g/t for ore located up to 150m below surface and 0.8g/t for ore located more than 150m below surface, respectively.
The tenement package comprises 14 licences, including 12 exploration licenses, one prospecting license, and one mining lease across the 380km2 landholding.
Discovery Capital Partners acted as facilitator of the acquisition to Hastings.
Speaking to Mining.com.au about the sale, Great Boulder Managing Director Andrew Paterson says the company is happy to see Whiteheads transition to a project management team “with a track record of value creation from exploration to development”.
“The prospectivity and potential of Whiteheads has been overlooked given the prioritisation of funds and management time at our flagship Side Well Gold Project, and we’re pleased to become a supportive shareholder in Hastings while they unlock significant value at Whiteheads in this current gold market,” Paterson tells this news service.
This acquisition enables Hastings to extend its footprint in the Eastern Goldfields of Western Australia, complementing the company’s geological and operational expertise of the area along its flagship Yangibana Rare Earths joint venture project.
Following the acquisition, Hastings aims to publish a JORC-compliant resource estimate.
Hastings Executive Chairman Charles Lew says the acquisition is the next step in the company’s growth trajectory following the creation of the Yangibana joint venture in partnership with Wyloo.
“The Whiteheads Project provides Hastings with a low-cost entry to a well-understood gold exploration opportunity with significant upside potential supported by identified drill targets and other untested gold anomalies at surface in close proximity to Kalgoorlie, the Gold Capital of Western Australia,” Lew says.
“Upon completion of the acquisition of the Whiteheads Gold Project, we look forward to publishing a JORC Resource over the coming months.
“Hastings will continue to partner alongside Wyloo in the Yangibana Joint Venture to bring it to (final investment decision) FID and whilst exploring the different options for our Brockman Niobium and Heavy Rare Earths, and Ark and Darcy gold exploration projects.”
Great Boulder first acquired the Whiteheads project in late 2019 through the annual mining conference, Diggers and Dealer, as the company was looking to pivot its focus from nickel to gold.
“It was a perfect fit for us at the time as we were a very small company. It was something that we could afford and we saw quite a lot of potential there,” Paterson tells Mining.com.au.
“One of the other side effects of the COVID shutdowns was that it gave us time to troll through the internet looking for other projects and that was when we first identified Sidewell at Meekatharra.”
Paterson says that the company is excited to refocus on the development of its Side Well Gold Project, following the recent discovery of additional mineralisation. Results returned 14m @ 1.64 grams per tonne gold from 83m, including 4m @ 3.59g/t gold from 86m, as reported on 23 May.
Great Boulder will try to accelerate drilling in the second half of the year in order to try and get the resource update ready as soon as possible.
Hastings is an Australian rare earths producer, focused on the development of its wholly owned Yangibana Rare Earths Project in Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Great Boulder Resources
