PERTH (miningweekly.com) – Gold explorer Middle Island Resources has inked a binding sale and purchase agreement with ASX-listed Strategic Energy Resources (SER) to acquire the East Tennant project in the Northern Territory.
Middle Island will issue 18.24-million shares in the company, at a deemed price of 3.5c each, in exchange for the project.
The East Tennant project consists of six exploration licences located near Middle Island’s existing projects, with the company telling shareholders on Tuesday that the transaction was aligned with its corporate strategy of building value through exploration and consolidation of high-quality under-explored greenfield projects with significant potential.
The East Tennant region is highly prospective for the discovery of copper/gold and lead/zinc/silver, and SER has assembled a portfolio of high-priority targets which demand drill testing,” said Middle Island CEO Roland Bartsch.
“The proposed purchase of the East Tennant project by Middle Island expands the Barkly Super project’s already considerable land position and target list and is an exciting addition to Middle Island’s exposure to potential exploration success across the region.”
SER MD Dr David DeTata told the company’s shareholders that the East Tennant region remained highly prospective for copper and gold discoveries, and noted that the sale of the project was a sensible consolidation that ensured SER’s targets would be tested and would increase the company’s exposure to exploration success across the region.
“This transaction is aligned with SER’s corporate strategy: generate high-quality greenfield projects, add value through science-driven exploration, and share risk and reward, ensuring the strategy can continue.”
The sale of the East Tennant project will likely be completed following the completion of due diligence and subject to regulatory approval.