- Labyrinth Resources (LRL) acquires Nippon Dragon Resources’ 100 per cent interest in the Labyrinthe and Denain gold projects in Canada
- Labyrinth paid an initial amount of C$2 million cash (A$2.17 million) from its A$8 million placement, with the balance of C$5 million (A$5.4 million) total cash consideration payable in two equal instalments
- Preparatory works have been initiated at Labyrinthe for underground diamond drilling, expected to start in January 2022
- Labyrinth Resources increased 9 per cent, trading at 3.6 cents at 3:20 pm AEDT
Labyrinth Resources (LRL) has acquired a 100 per cent interest in the Labyrinthe and Denain gold projects in Canada.
The projects were acquired from Nippon Dragon Resources, with all conditions now satisfied.
Labyrinth paid an initial amount of C$2 million cash (A$2.17 million) from its A$8 million placement, with the balance of C$5 million (A$5.4 million) total cash consideration payable in two equal instalments of C$1.5 million (A$1.6 million), due on May 8 and November 7, 2022.
Labyrinth Resources CEO Matt Nixon said the completion of the acquisition has triggered an exciting period of growth and value accretion for the company.
“Completing the acquisition of two high-grade gold projects, including a proven, immediately accessible historic underground mine at Labyrinthe, places the company in an enviable position in the highly-sought after Abitibi Greenstone belt region of Ontario/Quebec,” Mr Nixon said.
“We will now use the demonstrated skill-set of the Labyrinth team to define and unlock the significant gold resource upside we recognise at both assets.”
The company has steered its exploration focus to the two high-grade gold projects, with a diamond drill rig mobilised at Denain and ready to kick off a roughly 4,000 metre program.
Preparatory works have been initiated at Labyrinthe for underground diamond drilling, expected to start in January 2022.
Labyrinth Resources shares jumped 9 per cent, trading at 3.6 cents at 3:20 pm AEDT.