Strickland Metals (ASX:STK) has entered into a binding share sale and purchase (SPA) agreement with ISIHC, to acquire Betoota Holdings, which owns the Rogozna Gold Project in Serbia.
The Rogozna project covers a 184km2 area and contains an inferred resource of 5.44 million ounces (Moz) of gold equivalent, comprising 2.96Moz gold, 214,000 tonnes of copper, and 364,000 tonnes of zinc.
The total acquisition costs $37 million, with Strickland paying $750,000 cash and issuing about 379.777 million STK shares and 50 million unquoted options to ISIHC — which is a subsidiary of Ibaera Capital Fund.
Completion of the deal will also see current Strickland CEO Andrew Bray retire and Paul L’Herpiniere appointed as Managing Director.
Bray says the acquisition is primarily being conducted via the issue of escrowed Strickland scrip, representing 19.4% of the post transaction structure.
“In our view, the project has the potential to grow into one of the largest undeveloped gold deposits globally, making it precisely the type of asset that will attract very compelling valuations as the project advances,” Bray says.
“The incredible upside that Rogozna offers is something that is quite rare in this industry. In particular, the potential for significant copper-gold porphyry mineralisation outside of the main prospect areas could be a tremendous bonus as exploration programs unfold.”
Once the acquisition is completed, Strickland intends to conduct comprehensive exploration programs across all four prospects. The company will focus on high-grade zones and new discoveries.
At the Shanac prospect, exploration will focus on infill and extensional drilling aimed to increase confidence in future resources. At the Medenovac Project, Strickland will focus drilling on zinc-copper-gold core along strike, with the aim to deliver a maiden inferred resource.
At the Gradina prospect, Strickland will conduct infill drilling aimed at extending existing gold lodes up dip towards the surface and define a maiden inferred resource.
Further metallurgical testwork will also be carried out within the project to define resource areas.
Strickland Metals is a mineral explorer focused on its portfolio of projects across Australia. The company’s projects are considered prospective for copper, gold, zinc, lead, and silver.
Write to Aaliyah Rogan at Mining.com.au
Images: Strickland Metals
