- Silver City Minerals (SCI) has enjoyed a 55 per cent spike in its share price after acquiring a majority stake in the Austin Gold Project in Western Australia
- The explorer is set to earn an 80 per cent interest in the prospective tenement after entering a binding share sale and joint venture agreement with Gardner Mining
- Austin Gold is situated in the Murchison greenstone province of Western Australia, adjacent to Musgrave Mineral’s Break of Day deposit
- In broader terms, Silver City says the acquisition represents an opportunity to conduct a new exploration strategy across a large and highly prospective tenement package
- Silver City Minerals is up a solid 50 per cent following the news, trading at 2.7 cents per share
Silver City Minerals (SCI) has enjoyed a 55 per cent spike in its share price after acquiring a majority stake in the Austin Gold Project in Western Australia.
The base and precious metals explorer is set to earn 80 per cent interest in the prospective tenement, which is situated in the Murchison greenstone
province of Western Australia.
Austin Gold touts a portfolio of granted mining leases and exploration licences covering 175 square kilometres and sits adjacent to the Break of Day deposit, owned by fellow ASX-lister Musgrave Minerals (MGV).
Silver City says modern-day exploration at Austin Gold has been minimal but did note a shallow drill intercept was yet to be followed up, which included six metres at 15.8 g/t gold from 36 metres.
In broader terms, the explorer says the Austin Gold Project represents an opportunity to conduct a “new exploration strategy based on the newly identified controlling structures across a large and highly prospective tenement package”.
The acquisition
Silver City has entered a binding share sale and joint venture agreement with Gardner Mining for the acquisition of Gardner Tenements, with Silver city set to issue 300 million fully paid ordinary shares at 1.5 cents per share as consideration.
The companies will then form an incorporated joint venture for the purpose of exploration and development on the proposed tenements.
Siliver city also hinted at a placement to raise $1.5 million, including a commitment from the Vendor to subscribe for their pro-rata share of roughly $600,000.
Silver City Minerals is up a solid 50 per cent following the news, trading at 2.7 cents per share at 12:57 pm AEST.