TG Metals (ASX:TG6) has signed a sale and purchase agreement to acquire 80% of the Van Uden Gold Project in Western Australia, from privately held Montague Resources Australia.
Futura Capital is acting financial advisor on the transaction, with Steinepreis Paganin as legal advisor.
Van Uden is located on the Forrestania Greenstone Belt, some 90km east-northeast of Hyden and 120km south of Southern Cross.
Under the agreement, TG will pay a $2.5 million cash payment and issue 5.71 million shares in the company valued at $1 million.
An additional deferred cash payment of $500,000 will be paid one year after completing the acquisition or on TG completing a capital raise of at least $1 million.
CEO David Selfe says this acquisition provides the company with an advanced gold asset with opportunities for near term cashflow, at a time of record gold prices.
“It is located very near to our existing Lake Johnston lithium deposits, which allows opportunities for operational synergies for both of TG’s projects,” Selfe says.
“The Van Uden Gold Project has historically only been subject to shallow drilling, providing enormous exploration upside through testing the known mineralisation down dip along its entire plus 2,000m strike length.
“There are several near-term high priority opportunities, including defining a JORC-2012 mineral resource estimate from the extensive historical database, and assessing the viability of existing ore stockpiles for toll treatment.”
The project’s resource estimate totals 5.37 million tonnes @ 1.38 grams per tonne gold for 238,000 ounces of contained gold.
TG and Montague are actively working to fulfil the conditions precedent to the acquisition. The company’s geology staff are working on revision of the entire database including the recent drilling conducted since 2020.
Drill planning has begun for the first drilling to be undertaken by TG on the project.
Write to Aaliyah Rogan at Mining.com.au
Images: TG Metals
