PERTH (miningweekly.com) – Junior Black Dragon Gold Corp has started its hunt for gold in Western Australia with the acquisition of the Padbury and Ivan Well gold projects.
The ASX-listed company on Wednesday announced the acquisition of privately-held Marlee Gold, saying it was a key part of its strategic growth plan to expand and diversify its precious metals exploration portfolio while advancing its high-grade Salave gold deposit, in Spain.
Black Dragon will pay a A$10 000 exclusivity fee, and on completion of the transaction will pay A$70 000 in cash and issue 1.42-million of its own shares, worth a further A$70 000, as well as 1-million unlisted options with an exercise price of 9.8c each and an expiry date of 24 months.
Black Dragon would also issue a 1.5% net smelter royalty.
A further A$1-million will become payable in either cash or Black Dragon shares on the announcement of a mineral resource estimate of at least 500 000 oz of gold at a grade of at least 2 g/t, and a further A$1-million will become payable on the announcement of an additional 500 000 oz of resource.
“The deal presents our shareholders with exciting early-stage exploration opportunities in a proven gold region of Western Australia,” said MD Gabriel Chiappini.
“We have completed a thorough review and due diligence process of several precious metal new venture opportunities in Australia. The standout performer from this process was Marlee Gold, offering a low-cost high-reward entry into the Western Australian gold exploration sector.”
Chiappini said that the projects compiled by Marlee Gold showed extensive, yet untested gold anomalism and presented a significant opportunity for a new discovery.
“The addition of Marlee Gold complements the ongoing development work we’re undertaking at our 1.5-million-ounce Salave gold project in Spain. Our main focus for value-accretive returns for our shareholders is to progress and develop the Salave gold project,” he added.