Metal Bank (ASX:MBK) has signed a non-binding agreement to acquire gold assets from Hastings Technology Metals (ASX:HAS), including the Whiteheads Project to expand its Western Australian focused gold strategy.
Hastings will sell its Western Australian assets for a consideration of $2.3 million in shares, each priced at $0.014.
Pricing of securities represents the 10-day volume weighted average price (VWAP) for the date of signing.
The total consideration accounts for $2 million to be directly held by Hastings, and the remaining $300,00 for cash balance to be held by Great Western Gold, which stakes a 75% interest in Whiteheads tenements under a joint venture as well as a whole stake in other tenements.
Metal Bank will acquire the project, along with the Ark Gold’s namesake project holding two exploration licences 250km northeast of Carnarvon, and the Darcy Project, comprising three exploration licences in the Kimberley region.
Hastings will be required to pay a deferred consideration of $800,000 to Whiteheads vendors over the next five years, subject to defined resource milestones.
The acquisition aligns with Metal Bank’s greater strategy to push projects towards production, jumping in on Hastings’ targeting of the Seven Leaders and Blue Poles deposits to become open pit.
Hastings intends to use results from an upcoming drilling program to determine a maiden JORC-compliant resource, which will aid the mining approval process.
Chair Ines Scotland says the addition of Hastings’ gold assets align with the company’s direction to gold production.
“The Hastings’ gold projects complement our strategy for the Kingsley and Homestead projects at Livingstone that we are now advancing to Scoping Study stage,” Scotland says.
“The Hastings’ acquisition furthers our strategy of building a gold portfolio in Western Australia with assets that have the potential for near term production utilising nearby third-party processing infrastructure, as well as significant exploration upside.”
Hastings Executive Chairman Charles Lew describes the divestment as a strategic step for the company.
“Our primary focus is to bring our world-class Yangibana Rare Earths Project, now joint venture with Wyloo, into construction and production whilst at the same time reward our shareholders via this divestment of its gold assets into Metal Bank,” Lew says.
In conjunction with this sale, Hastings COO Tim Gilbert will leave his current position to join Metal Bank as the new CEO.
“Tim has extensive experience in managing and operating gold mines and will be invaluable in advancing the Whiteheads and Livingstone gold projects,” Lew adds.
Hastings Technology Metals is a Perth-based explorer focused on developing rare earths and gold projects in Western Australia.
Metal Bank is focused on executing copper and gold projects in Australia and Saudi Arabia.
Write to Maddison Elliott at Mining.com.au
Images: Hastings Technology Metals
