Waratah Minerals (ASX:WTM) has executed a binding option deed to acquire the remaining mining leases and consolidate in the under-explored Spur Gold District in the East Lachlan region in New South Wales.
The company has entered into a binding option deed to acquire 100% of the shares in the holder of the ML960, ML1092, and GL3694 Goldenclad mining leases, which cover several historic small-scale gold mines and multiple high-priority untested mineralised structures.
The acquisition completes the consolidation of the large and under-explored Spur Gold District, with all historic gold mines now secured by Waratah.
Combined with the company’s existing tenure, the landholding occupies a highly strategic, district-scale position in one of Australia’s most endowed mineral belts.
“Consolidating the Spur Gold District is a significant step as it strengthens our control over an emerging gold district, improves exploration efficiency, and increases the likelihood that separate prospects converge into a larger gold deposit,” Executive Chair Dr Andrew Stewart says.
“Bringing the district under single ownership eliminates drilling redundancy and allows Waratah to execute one coherent exploration program across the entire district.”
Under the key terms, Waratah secures an exclusive option to purchase all issued shares held by the sole shareholder in M.N.I. Mining Pty Ltd for an aggregate $1.2 million.
The company will pay an initial option fee of $100,000, comprising $50,000 cash and $50,000 in Waratah shares.
Following exercise of the option, Waratah will pay the owner $500,000, comprising $250,000 cash and $250,000 in Waratah shares.
Post-completion, the seller will be entitled to a $500,000 bonus payment if a JORC reserve of 20,000 ounces gold is identified.
During the 24-month option period, Waratah must spend $400,000 on exploration of the tenements, entitling the seller to a 1.5% net smelter return, which Waratah may elect to buy back.
“With drilling set to commence in coming weeks, this acquisition is about increasing the size and coherence of the asset … while also de-risking the project for investors and potential partners,” Stewart adds.
Write to JC Villarba at Mining.com.au
Images: Waratah Minerals
