- Gladiator Resources (GLA) has bought the Bendoc Gold Project in NSW for $50,000 upfront, with more payments to be made based on the project’s success
- Gladiator will pay five million shares for Bendoc once the transfer of ownership has been registered
- The company will then pay $125,000 upon defining a 100,000-ounce JORC resource for Bendoc or if it applies for a mining tenement within the exploration license
- Gladiator plans to review historical drilling at the Bendoc area to put together a mineral resource estimate for the project
- At the same time, the junior gold explorer has extended an option to buy the Rutherglen project, also in New South Wales, for 12 months
- Shares in Gladiator Resources are up almost 12 per cent today to trade at 1.9 cents each
Gladiator Resources (GLA) has bought the Bendoc Gold Project in NSW for $50,000 upfront, with more payments to be made based on the project’s success.
The junior gold explorer told shareholders today it has exercised an option to buy the Bendoc project and extended an option to buy the Rutherglen Gold Project, also in NSW, by 12 months.
To pay for the Bendoc project, Gladiator will pay $50,000 upfront and issue the seller five million GLA shares on registration of the transfer of ownership.
From here, Gladiator will pay $125,000 on defining a 100,000-ounce JORC resource for Bendoc or if the company applies for a mining tenement within the exploration license.
Finally, Gladiator will grant the seller a 2-per-cent net smelter royalty on all production from the project.
Why the buy?
According to Gladiator, the Bendoc project covers 220 square kilometres of what was historically known as the Bendoc, Bonang, and Clarkeville goldfields.
This area has a history of alluvial mining and small, high-grade gold mines, with drilling in the 1990s returning several gold intersections over a strike length of around 600 metres.
However, no JORC-compliant mineral resource estimate has ever been established for the project — which forms the basis for Gladiators decision to buy the project.
The company plans to review past drilling data for inclusion in an upcoming mineral resource estimate for the project. Gladiator has already received necessary approvals from Heritage Vic and the Victorian Department of Environment, Land, Water, and Planning for its plans.
This means the company is just waiting for Parks Vic Cultural Heritage Review. Once written approvals from all relevant parties are received, Gladiator will get to work designing drill programs to target existing anomalies in the project area and requesting drill tenders.
Gladiator Chairman Ian Hastings said the company is finalising work plans for Bendoc and Rutherglen projects, which are expected to begin during the March 2021 quarter.
“At Bendoc, subject to availability of a suitable drill rig, the company proposes to commence its maiden drilling program and at Rutherglen the proposed ground and aeromagnetic program is imminent,” Ian said.
“These programs should substantially enhance our understanding of each project and demonstrate their future potential.”
Rutherglen option extension
As for the Rutherglen project, Gladiator has extended an option to buy the project for 12 months. However, the company will still take on some important work at the project during this period, meaning the extension comes with a price reduction.
In February 2020, Gladiator agreed to buy the project for $50,000 upfront and five million shares, much like Bendoc. Now, the company has the option to buy the project for $25,000 and 2.5 million shares based on the work it plans to complete at the project over the next year.
Like with Bendoc, Gladiator will pay $125,000 upon defining a 100,000-ounce JORC resource or applying for a mining tenement, and GLA will also give the seller a net smelter royalty of 2 per cent of all production from the project.
Shares in Gladiator Resources gained 11.76 per cent today to trade at 1.9 cents each at 2:30 pm AEDT.