WIN Metals Acquires High-Grade Gold Project in Western Australia
WIN (WIN) Share Update August 2024 Tuesday 27th
WIN Metals to Acquire High-Grade Gold Project in Western Australia
WIN Metals Ltd (ASX:WIN) has announced the acquisition of the Palm Springs Gold Project, now renamed Butchers Creek Gold Project, from Meteoric Resources NL. This acquisition marks a significant expansion in WIN's portfolio, adding a high-grade gold resource with substantial growth potential.
Instant Summary:
- Acquisition of Palm Springs Gold Project from Meteoric Resources NL.
- Existing Mineral Resource Estimate of 5.6Mt @ 2.0g/t Au for 357,000oz of gold.
- Production history of 52,000oz of gold between 1995-1997.
- Consideration includes $1,000,000 cash and $1,750,000 in WIN shares.
- Contingent consideration of $1,000,000 payable 18 months post-settlement and $1,250,000 upon production of 20,000oz of gold.
- Planned capital raising of at least $3M within 75 days to fund exploration and development.
Acquisition Details
WIN Metals Ltd (ASX:WIN) has signed a tenement sale agreement to acquire the Palm Springs Gold Project from Meteoric Resources NL (ASX:MEI). The project, now renamed Butchers Creek Gold Project, is located 30km south-east of Halls Creek in the Kimberley region of Western Australia.
The project includes a high-grade mineral resource of 357,000oz of gold from 5.6Mt @ 2.0g/t Au, based around two resource areas. The project also has a production history of 52,000oz of gold produced between 1995 and 1997.
Transaction Consideration
The acquisition involves a total consideration of $1,000,000 in cash and $1,750,000 in WIN shares. An exclusivity fee of $50,000 has already been paid, and the remaining $950,000 will be paid at settlement. The WIN shares issued as part of the consideration will be subject to a 12-month voluntary escrow agreement.
Additionally, contingent consideration includes $1,000,000 payable to Meteoric 18 months after settlement and $1,250,000 upon the production of 20,000oz of gold at the project. The cash consideration will be funded from WIN's existing cash reserves.
Project Overview
The Butchers Creek Gold Project comprises three mining leases, five exploration licenses, three prospecting licenses, and two license applications, covering a total area of 100 square kilometers. The project hosts over 60 known gold occurrences and has significant exploration potential.
WIN plans to commence drilling within the next 4-6 weeks, with field reconnaissance work already completed as part of the due diligence process. The company aims to expand the existing resource base and explore new high-order drill targets.
Management Comments
WIN Metals Managing Director and CEO, Mr. Steve Norregaard, expressed enthusiasm about the acquisition, stating, '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.'
Meteoric Resources Executive Chairman, Dr. Andrew Tunks, also commented, 'We are 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.'
The acquisition of the Butchers Creek Gold Project is expected to positively impact WIN Metals' stock by adding a high-grade gold resource to its portfolio. The project's potential for resource expansion and the planned capital raising for exploration and development could attract new investor interest and boost the company's market value.
Investor Reaction:
Analysts are likely to view the acquisition favorably, given the project's existing resource base and significant exploration potential. The addition of a high-grade gold asset to WIN's portfolio could enhance the company's growth prospects and attract new investments.
Conclusion:
Investors should monitor WIN Metals' progress with the Butchers Creek Gold Project, particularly the upcoming drilling activities and capital raising efforts. The acquisition presents a promising opportunity for the company to expand its resource base and enhance shareholder value.