Gold production company Alkane Resources [ASX:ALK] has managed to acquire an extra two packages of exploration tenements in the Macquarie Arc, New South Wales.
By entering into an agreement with Sandfire Resources for the swap of $1.9 million worth ALK shares, Alkane will become the 100%-owner of two highly prospective projects world-class gold deposits.
ALK shares were trading for 66 cents at the time of writing, inching up 1.5% by the early afternoon.
Also today, competitor Ramelius Resources [ASX:RMS] was moving down even as the gold miner said it has earned 75% interest in the Mt Finnerty Joint Venture with Westar:
Source: TradingView
Allkane swaps shares for projects
Alkane has managed to acquire an extra two exploration projects in the Macquarie Arc, NSW by entering into an agreement with Sandfire Resources.
The agreement involves a swap of 2,781,438 ALK shares, a transaction worth $1.9 million at the issue price of the 10-day VWAP leading up to the agreement signing.
All being well, the projects will soon be 100% owned by Alkane with no royalties or liabilities to worry about.
As part of the deal, Alkane will also acquire all pre-existing data on the tenements and four exploration licenses for all their area in the Central West and Riverina regions of NSW.
The company will possess extensive geological knowledge, which will mean it will not have to spend too much of its expense evaluating the area.
Alkane says both projects are considered ‘highly prospective for world class Au-Cu porphyry deposits’, which are named the Comobella North Project (EL8338) and the Southern Junee Porphyry Project (SJPP).
Comobella North lies adjacent to the NMPP tenement group and covers 64km of the same volcanic area as Boda and Kaiser’s inferred resources. Being an extension of the tenure covering the entire 15km prospective northwest of for the Boda Kaiser corridor, Alkane believes Comobella will make a significant difference to its strategy.
As for the Southern Junee Porphyry Project, this is a group of tenements that covers 235km of the southern extension of the Junee-Narromine Volcanic Belt of the Macquarie Arc. It has a similar geological setting as at the world-class Northparkes Cu-Au mine.
Alkane Managing Director Nic Earner stated:
‘The addition of these tenement packages will see us continue to build on our track record of exploration success in New South Wales. We will be drawing on our decades of experience, particularly the extensive geological knowledge accumulated at Boda & Kaiser, to conduct cost effective evaluation of these new prospective areas.’
ALK is not looking for shareholder approval for using its shares, as it is not bound by ASX listing rules.
However, the transfer of the tenements is still subject to ALK carrying out its due diligence on them, and granting approval once the miner is wholly satisfied with the prospects:
Source: ALK
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Regards,
Mahlia Stewart,
For The Daily Reckoning Australia
