WIN Metals has announced that it will acquire the tenement portfolio formerly known as the Palm Springs Gold Project from Meteoric Resources NL.
Located 30km south-east of Halls Creek in the Kimberley region of Western Australia, the project comprises an already established high-grade mineral resource of some 357,000oz of gold based around two resource areas, a production history of 52,000oz produced between 1995 and 1997, and a host of advanced, high order drill targets from over 60 known gold occurrences on the 100km2 tenement package.
WIN will now refer to the acquired tenements as the Butchers Creek Gold Project, reflecting its primary gold endowment, the historic Butchers Creek Gold Mine.
WIN will acquire the tenements currently held by Meteoric’s wholly-owned subsidiaries, Horrocks Enterprises and Kimberly Resources.
The tenement package comprises three mining leases, five exploration licences, three prospecting licences and two licence applications.
As a condition precedent to concluding the transaction, WIN will be required to complete a capital raising of at least $3 million within 75 days of signing. Most of the raised funds will be dedicated to the exploration and development of Butchers Creek.
The company has not determined the terms of this capital raise and will update the market once this has occurred. Completion of the transaction is also subject to:
- The company obtaining shareholder approval for the purposes of Listing Rule 7.1 to issue the consideration shares
- The parties receiving all the regulatory and third-party approvals that are required for the transaction to proceed
WIN Metals’ Managing Director and CEO, Steve Norregaard, welcomed Meteoric Resources as its new major shareholder to the WIN share register.
“This pivotal acquisition for WIN heralds the end of a challenging period for the company searching for a new strategic direction to unlock value for our shareholders and attract new investor interest.
“We believe we have made a great choice in securing a quality gold asset with ample growth upside and a proven production history in what we regard as a very much forgotten gold province.
“Our existing nickel and lithium resource base remains firmly part of the portfolio to complement this new commodity and project area.
“The sleeves are rolled up and we are raring to get going.”
Meteoric Resources’ Executive Chairman, Dr Andrew Tunks, said Meteoric Resources is delighted with the sale of the Butchers Creek Gold Project to WIN Metals.
“This prospective gold asset deserves dedicated attention in the current gold market, and the Board of Meteoric is pleased that WIN can provide this focus given our intense efforts on the Caldeira Rare Earth Element Project in Brazil, which is rapidly progressing towards development.
“As well as realising value for our shareholders with the asset sale, our investors retain ongoing exposure to the exploration and development of the Butchers Creek Gold Project through our major shareholding in WIN Metals.
“We believe WIN Metals has an excellent technical team and a motivated Board looking to drive this project forward, and we look forward to seeing their success in advancing Butchers Creek.”
Featured image: Hywit Dimyadi/shutterstock.com
