Solstice Minerals (ASX:SLS) has pocketed $10 million after completing the sale of its 80% stake in the Hobbes exploration licence to Northern Star (ASX:NST).
The Hobbes exploration licence is located near established mining and haul road infrastructure about 5km southwest of the Porphyry Mining Centre in Western Australia, where Northern Star operates open-pit and underground gold mines.
Now with a total cash position of roughly $18 million, Solstice says it will progress its various gold targets and consider new commercial opportunities that complement its existing activities.
In parallel with the sale, the company will purchase a ‘legacy performance obligation’ to the previous 20% owner of the licence for $150,000 cash within seven days.
The Hobbes gold deposit is an example of ‘blind’ gold mineralisation that was hidden under transported cover and discovered late in the exploration process via aircore drilling. Solstice sees potential to locate new mineralisation in similar covered structural positions elsewhere in its Yarri tenure.
However, recent weather events in the Yarri area have impaired Solstice’s aircore drilling program. Drilling is scheduled to restart shortly.
In the meantime, Solstice, which has a $15.55 million market capitalisation, has continued with approvals and targeting work.
The Hobbes gold deposit was quantified in 2023 and contains an inferred resource of 4.6 million tonnes at 1.2 grams per tonne gold for 177,000 ounces of gold.
Solstice Minerals is a mineral explorer focused on its assets in the Eastern Goldfields of Western Australia.
Write to Adam Drought at Mining.com.au
Images: Solstice Minerals
