Magmatic Resources (ASX:MAG) has entered into an agreement to acquire the Weebo Gold Project in Western Australia’s eastern Goldfields region.
The Weebo Project, covering 136km2, hosts a suite of prospects from advanced drill-defined targets to recently defined surface geochemical anomalies and conceptual targets.
Under the deal with the vendors Russell Geoffrey McKnight, Ross Fredrick Crew and Christopher Crew, Magmatic will issue 28 million shares and 14 million performance rights upon satisfying performance milestones.
Magmatic, which has a market capitalization of $16.26 million, will also pay $50,000 cash upon completing the first stage of the deal.
As part of stage two, the company will commit $100,0000 on exploration, as well as pay $9,408 towards the rent expenses for the purposes of renewing the tenements.
Completion of the agreement is subject to customary conditions. The transaction is anticipated to be completed in July 2025.
Managing Director David Richardson says the prospectivity of this project is highlighted by the proximity to five large gold mines.
“We believe the project area is underexplored, offering great opportunity for new discoveries,” Richardson says.
“We have already put a local exploration team in place and expect to commence exploration drilling in the coming quarter.”
Further, Magmatic has also entered into a share sale agreement with the shareholders of privately held Northern Goldfields Resources.
Magmatic has agreed to issue shareholders 8 million shares across two stages, which will be subject to 12 months voluntary escrow, to acquire the company.
Magmatic Resources is a gold and copper-focused explorer with a portfolio of projects located across Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Magmatic Resources
