Meeka Metals (ASX:MEK) has entered a binding agreement to acquire numerous gold mining tenements around Mount Holland in Western Australia.
The tenements, currently held by MH Gold and Montague Resources, together cover 71km2, including 24km of north-south striking banded iron formation (BIF) units.
Meeka will pay $10 million to the vendors on completion of the agreement, along with another $10 million on the three-month anniversary of completion.
The vendors will assume a royalty of $25 per ounce of gold produced and sold.
The agreement excludes the right to explore for and mine lithium, which is instead subject to a separate lithium rights agreement.
Prior to this agreement, no ‘significant’ gold-focused exploration has been conducted across these tenements in the last 15 years. Meeka says there has been little to no drilling beyond shallow intersections.
Managing Director Tim Davidson says the Archaean greenstone belt is “evidently fertile”, with a historical production of 1.2 million ounces of gold.
“Despite significant past production and strong evidence, there is more gold to be found,” Davidson says.
“The 24km of north-south striking, gold-hosting BIF within the acquired tenure presents compelling targets for drilling, and we intend to systematically drill out these targets over the next 12–18 months.”
Meeka Metals is a Western Australian developer and explorer with a portfolio of projects prospective for gold.
Write to Maddison Elliott at Mining.com.au
Images: Meeka Metals
