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- Traka Resources (TKL) is up 260 per cent after securing a deal with Galaxy Resources (GXY) to secure rights for Mt Cattlin Gold Project in WA
- Under the new agreement, Galaxy will receive Traka’s 20 per cent interest in the tenements but will give Traka the ability to purchase mining leases over future gold production areas
- If an acquisition does occur, Galaxy’s pegmatite rights will not be impacted
- The new agreement will dissolve the existing joint venture between the two companies
- Traka Resources is up a massive 260 per cent on the market this morning, trading for 3.6 cents per share, while Galaxy is up 5.03 per cent and trading for $1.05
Traka Resources (TKL) is up 260 per cent after securing rights to Mt Cattlin Gold Project as it signs a deal with Galaxy Resources (GXY).
Under the new agreement, Galaxy will receive Traka’s 20 per cent interest in the tenements but will give Traka the ability to purchase mining leases over future gold production areas.
If an acquisition does occur, Galaxy’s pegmatite rights will not be impacted. The new agreement will dissolve the existing joint venture between the companies.
Mt Cattlin is located in Western Australia’s Ravensthorpe greenstone belt. Since the project recommenced in 2016, it has been a reliable producer of high-quality lithium concentrate.
Prior to the lithium mining, Mt Cattlin North Tenements has a long history of gold mining, with exploration work done by Metana Minerals
Traka originally purchased the tenements and recommenced exploration for gold in 2004. The company confirmed the excellent scope of the project, however, gold price was previously in the low US$400s, making this project a marginal opportunity.
But now that the gold price is much higher, priced at US$1868 per ounce, the opportunity at the project has substantially improved.
Traka is up a massive 260 per cent on the market this morning, trading for 3.6 cents per share, while Galaxy is up 5.03 per cent and trading for $1.05 at 11:45 am AEST.
