PERTH (miningweekly.com) – Gold miner Red 5 has exercised its option to acquire the Great Western gold deposit from fellow listed Terrain Minerals.
The option agreement inked in November last year required Red 5 to make payments totalling A$2.5-million and a further A$2.2-million to exercise the option, with the exercise price paid in Red 5 shares calculated on a five-day volume weighted average price for the five days prior to the completion date.
Red 5 on Friday said that the acquisition supported the company’s multi-strand strategy to expand the Darlot mineral resource base, which includes regional bolt-on acquisitions in addition to aggressive exploration being undertaken as part of the Darlot Mining Hub strategy.
The Great Western deposit, which is estimated to host some 709 000 t of resource at 2.7 g/t gold for 62 000 oz, is located some 80 km trucking distance south of the Darlot processing plant, which is currently operating at a rate of one-million tonnes a year.