A wholly-owned subsidiary of Canadian Securities Exchange-listed RUA Gold, Reefton Acquisition Corp, is set to fully acquire the capital of Reefton Resources, Siren Gold’s wholly-owned subsidiary.
Reefton Resources owns 100 per cent of the tenements that comprise Siren’s Reefton Project. The transaction will create the largest gold explorer on the Reefton Goldfield on the West Coast mining district of New Zealand’s South Island.
The transaction is expected to be completed in November 2024 and provides Siren with a cash payment of $2 million and $18 million in common shares of RUA. Following the completion of the transaction, Siren would own approximately 30.2 per cent of the current estimated issued and outstanding RUA shares.
The transaction eliminates the need for a potentially dilutive near-term equity raising to continue exploration at Reefton, while retaining continued ownership and upside in the expansion and future development of the Reefton Project.
The transaction will establish RUA as the dominant landholder in the region, with approximately 1,242km2 of tenements in the historical Reefton Goldfield.
Combining properties and exploration activities in the Reefton Goldfield provides several strategic benefits, including:
- Consolidation of the tenement package, creating the dominant Reefton Goldfield explorer
- Significant project synergies for mine development and a central processing hub
- Larger exploration programs with more consistent news flow
- Combines mine permitting and expedites eventual project construction
- Combined company best positioned to further consolidate the Reefton Goldfield
- Siren retains upside in the exploration and development of a consolidated Reefton
- Siren will be able to focus on exploration and development at Sams Creek
- RUA will be focused on the exploration and development of the combined Reefton belt
Siren’s Managing Director and CEO, Victor Rajasooriar, said, “Siren’s vision for the Reefton region has been to create a significant high-grade gold producer with a central processing facility fed by numerous underground mines.
“This transaction is a significant step in realising this vision and a great outcome for Siren shareholders. Siren can focus on the multi-million-ounce potential at Sams Creek while RUA can continue to explore the consolidated Reefton Project.”
RUA’s CEO, Robert Eckford, said the transaction between RUA and Siren Gold is a significant step in RUA becoming the largest tenement holder of the Reefton Goldfield district.
“This transaction is a natural fit for our portfolio and creates the opportunity for real synergies, which, combined with local knowledge, sets us for a rapid re-rating from further exploration success and resource delineation across the combined land package.”
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