Great Boulder Resources (ASX:GBR) is divesting its non-core Whiteheads Gold Project in Western Australia via an equity deal that allows it to retain exposure to the asset while focusing all of its attention on its flagship Side Well Project.
The junior explorer has struck a deal with private company Great Western Gold, which is planning a listing on the Australian Securities Exchange in the first half of 2025.
Great Boulder has received a $50,000 exclusivity cash payment and will receive equity in Great Western Gold worth $1.2 million on a successful listing at $0.20 per share.
The equity component comprises 2 million in upfront shares worth $400,000 at the completion of an initial public offer and staged performance rights that will be issued once Great Western Gold meets certain resource milestones.
Great Western Gold will also make a one-off cash payment to Great Boulder on listing, minus the already paid exclusivity fee, as a reimbursement for expenses incurred by Great Boulder between now and completion of the sale.
Great Boulder estimates expenses will be around $250,000.
The exclusivity period is six months with the option to extend for a further four months provided the planned listing is sufficiently advanced at the end of the initial exclusivity period.
Managing Director Andrew Paterson says Whiteheads was an important stepping stone for Great Boulder back in 2019 and this is a great outcome for shareholders.
“The prospectivity and potential of Whiteheads has been overlooked given the significant exploration success at Side Well, resulting in the prioritisation of funds and management time, and we’re pleased to be working with Great Western Gold to unlock value here,” he says.
“In addition to maximising the value for Great Boulder shareholders from Whiteheads, this transaction will further sharpen our focus on Side Well, where we are progressing a fully funded +50,000m drill program to deliver material resource growth and new discoveries.”
Great Boulder’s main focus is its Side Well Project in Western Australia, which has an existing 668,000-ounce open pittable resource.
The company is focused on growing the near-surface resources further initially, but has also identified additional exploration upside at depth.
The Mulga Bill Prospect — a 6km corridor of gold and pathfinder anomalism — hosts the majority of the existing resource and has previously returned very high grades of vein-hosted gold up to 3,160 grams per tonne (g/t).
Having recently switched back into the discovery phase, Great Boulder is increasingly confident it will grow the project into a large new gold camp.
The resource occupies just 1.1km of strike and remains open to the north for over 1.3km, including the Mulga North Prospect.
“From the work we’ve done so far I think there’s easily potential for a million ounces at Mulga Bill,” Paterson told Mining.com.au recently.
Write to Angela East at Mining.com.au
Images: Great Boulder Resources
