Siren Gold's Resource Expansion and Strategic Sale to RUA Gold
SNG (SNG) Share Update October 2024 Wednesday 23rd
Siren Gold Announces Significant Resource Update and Strategic Sale
Siren Gold Limited (ASX: SNG) has announced significant updates to its mineral resources and a strategic sale of its Reefton Project to RUA Gold Inc.
Instant Summary:
- Auld Creek MRE increased by 58% for gold and 66% for antimony.
- Reefton Project sold to RUA Gold for A$20 million.
- Siren retains a 26% stake in RUA Gold post-transaction.
- Sams Creek Project remains with a MRE of 824koz @ 2.8g/t Au.
Resource Expansion
Siren Gold Limited has reported a substantial increase in the Mineral Resource Estimate (MRE) for its Auld Creek project. The updated MRE now stands at 210koz @ 7.7g/t AuEq, marking a 58% increase in gold and a 66% increase in antimony. This expansion is attributed to ongoing exploration and metallurgical testwork that has shown promising recovery rates for both gold and antimony.
The Reefton Project, which includes Auld Creek, now boasts a total MRE of 483koz of gold and 14.5kt of antimony, equating to 588koz @ 4.7g/t AuEq. This increase underscores the project's potential and sets the stage for future development.
Strategic Sale to RUA Gold
In a strategic move, Siren Gold has entered into a definitive agreement with RUA Gold Inc., a Canadian-listed company, to sell its Reefton Project. The transaction is valued at A$20 million, comprising A$2 million in cash and A$18 million in RUA shares. This deal allows Siren to maintain a significant interest in the Reefton Project while acquiring an interest in RUA's high-grade Glamorgan Project in New Zealand.
Upon completion, Siren will hold approximately 26% of RUA's common shares, ensuring continued involvement in the Reefton Goldfield's future. Siren Chairman Brian Rodan will join the RUA Board, further solidifying the partnership.
Focus on Sams Creek
Post-transaction, Siren will focus its efforts on the Sams Creek Project, which has a current MRE of 824koz @ 2.8g/t Au. The project is poised for further exploration and development, with a pending mining permit application. Siren's strategic shift aims to maximize shareholder value by concentrating resources on this promising asset.
The resource expansion at Auld Creek positions Siren Gold as a significant player in the gold and antimony markets. The strategic sale of the Reefton Project to RUA Gold allows Siren to focus on its core assets while retaining a stake in the project's future success. This transaction is expected to enhance Siren's financial position, providing the capital needed for further exploration at Sams Creek.
Investor Reaction:
Analysts are likely to view the resource expansion positively, as it enhances Siren's asset base. The strategic sale to RUA Gold is seen as a prudent move, aligning with Siren's long-term growth strategy. Investors may react favorably to the increased focus on Sams Creek, given its potential for significant returns.
Conclusion:
Investors should consider the implications of Siren's strategic sale and resource expansion on their portfolios. The company's focus on Sams Creek presents a promising opportunity for growth. Staying informed on Siren's developments will be crucial for making informed investment decisions.