- Dreadnought Resources (DRE) is acquiring five tenements in Western Australia’s Gascoyne region
- The company has already paid $75,000 to acquire the tenements, with a further $300,000 to be paid at completion
- Additionally, it will issue 21 million shares to the vendors and will be subject to certain gross royalty payments
- Dreadnought says the tenements hold at least 10 historical gold mines and are highly prospective for gold, base metals, and rare earths
- Shares are trading 4.17 per cent higher at 12.5 cents each at 11:32 am AEST
Dreadnought Resources (DRE) has struck a deal to acquire five tenements in Western Australia’s Gascoyne region.
The new tenements cover 77 square kilometres between the company’s rare earths project and First Quantum Minerals’ earn-in Mangaroon project.
Dreadnought has already paid $75,000 to acquire the tenements, with a further $300,000 to be paid at completion.
Additionally, it will issue 21 million DRE shares to the vendors and will be subject to certain gross royalty payments between 0.5 and one per cent.
The company said the tenements hold at least 10 historical gold mines and are highly prospective for gold, base metals, and rare earths.
According to Dreadnought, the tenements have recorded attractive geology in historical exploration but there has been limited to no follow-up drilling.
Managing Director Dean Tuck said it will include new targets from the tenements into existing work programs in the region.
“The acquisition, when completed, closes a significant gap in our tenement position at Mangaroon,” he said.
“The Star of Mangaroon and associated ground was a key reason for Dreadnought taking a dominant position in the region and we see these tenements as important to our short and long term strategy for the region.”
Shares were trading 4.17 per cent higher this morning at 12.5 cents each at 11:32 am AEST.