Southern Cross Gold (SXG) is set to take control of a ‘significant’ swathe of prime gold-antimony mining land 60km north of Melbourne.
The Australian Treasurer, through the Foreign Investment Review Board (FIRB), has officially approved SXG’s bid to acquire Sparr Nominees.
Sparr owns substantial agricultural properties totalling 921.22 hectares adjoining SXG’s Sunday creek gold-antimony project.
SXG will spend $18.75 million to acquire Sparr’s land, with the terms of the acquisition specifying a consideration as 22,088,670 SXG shares for 100 per cent of Sparr’s. This will see Sparr owner Darren Morcombe become a substantial shareholder in SXG.
Sparr’s land will join SXG’s existing 133.29 hectares of freehold land, which has already been the subject of exploratory drilling, bringing the total to 1054.51 hectares (2605.8 acres).
“These agreements secure freehold land that directly surrounds the Sunday Creek project together with significant cash,” SXG managing director Michael Hudson said.
“All are critical for securing future pathways for the Sunday Creek project, which is developing into an expanding and significant global gold-antimony discovery.”
Touted to be one of Australia’s most significant gold-antimony exploration projects, Sunday Creek is well on the way to becoming Victoria’s next gold producer.
SXG turned heads in September after it uncovered a new, large gold-antimony deposit below the historically prolific Golden Dyke mine, now part of Sunday Creek.
With approval from the treasurer and the FIRB, SXG is expected to get the keys to Sparr’s land holdings by the end of the week.
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