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Leeuwin Metals Ltd (ASX:LM1) is taking on the 500-square-kilometre Marda Gold Project in Western Australia, including its multiple pits on granted mining leases, while promising exploration opportunities through relatively untouched historical prospects and high-grade drill intercepts.
The sale has been facilitated through a binding share sale agreement with Ramelius Resources Ltd (ASX:RMS), enabling Leeuwin to acquire subsidiary Marda Operations Pty Ltd (which owns the project).
Ramelius will receive a consideration of $500,000 worth of Leeuwin shares, to be issued upon completion, with further stages of payment including $500,000 upon the definition of a JORC-compliant resource of 500koz (milestone one), and $1M upon the definition of a JORC-compliant resource of 1Moz (milestone two).
Located 120 kilometres north of Southern Cross, Marda comprises mining, exploration, and prospecting leases which are prospective for both gold and iron ore, with previous exploration focusing mainly on near-mine areas and existing open pits.
However, Leeuwin aims to focus as well on the significant areas of prospective high-grade mineralisation across tenements, much of which is open and requires follow-up.
Some of the prospects in unmined areas have yielded assays such as two metres at 16.75 grams per tonne (g/t) gold from 12 metres, 3.6 metres at 16.4g/t gold from one metre, and one metre at 27.75g/t Au from 31 metres.
Executive chairman Christopher Piggott said the project promised significant upside to Leeuwin.
“The acquisition of the Marda Gold Project is a pivotal step for Leeuwin Metals, delivering significant value with minimal dilution to shareholders,” he said.
“This advanced gold project in Western Australia provides an exciting growth platform with substantial exploration potential.”
Leeuwin has been trading at six cents.
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