Industrial Minerals Secures $4.67 Million All-Share Deal to Acquire Laverton Gold Portfolio in Western Australia

$4.67 Million All-Share Acquisition Targets Historic Gold-Rich Laverton District with Over 28 Million Ounces Produced

Industrial Minerals has entered a binding Share Sale Agreement to acquire 100% of Galleon Metals Limited by the quarter ending 30 June 2026. The Laverton Gold Portfolio is valued at A$4,666,667 on an all-share basis, subject to shareholder approval, and includes a 2.0% net smelter return royalty on future gold production. This acquisition complements Industrial Minerals’ existing mineral exploration assets, aligning with its strategy to diversify and respond to market conditions.

Located in the Eastern Goldfields region of Western Australia, approximately 360 kilometres northeast of Kalgoorlie, the Laverton Tectonic Zone is an Archaean granite-greenstone terrane recognized as a premier gold-bearing district. Historically, the area has produced over 28 million ounces of gold and hosts world-class deposits such as Granny Smith (4.59 million ounces) and Lady Julie (2.4 million ounces), controlled by Magnetic Resources and Genesis Minerals. The portfolio’s 15 exploration licences cover about 205 square kilometres of highly prospective ground accessible via the Great Central Road with nearby infrastructure.

Four Drill-Ready Targets Along a 45-Kilometre Structural Corridor Near Genesis Minerals’ Deposits

The Laverton Gold Portfolio features four drill-ready BIF-hosted gold targets along a 45-kilometre structural corridor adjacent to multi-million-ounce deposits owned by Genesis Minerals. The geological setting mirrors the Barnicoat deposit (230,000 ounces at 1.5 g/t gold) and Chatterbox Trend deposits (370,000 ounces at 1.5 g/t gold), located 2.5 to 6 kilometres north within the same greenstone belt, validating the exploration potential.

Mineralisation occurs in Archaean banded iron formation sequences and associated mafic volcanic units, controlled by the Chatterbox Shear Zone at North Pool and northeast-trending shear structures at Gladiator, Crawford, and Majestic prospects. The Chatterbox Shear Zone extends at least 1,700 metres with only wide-spaced reverse circulation drilling (80 to 100 metres), indicating significant potential for infill and extension drilling.

Majestic Prospect Historic Drilling Confirms Extensive Near-Surface Gold Mineralisation

Industrial Minerals compiled historic drill results at the Majestic prospect (E38/4062), revealing a broad near-surface mineralised footprint along the central shear corridor. Notable intercepts include 7 metres at 1.61 g/t gold from 19 metres (hole GFR528), including 1 metre at 6.89 g/t; 5 metres at 1.59 g/t gold from 27 metres (hole GFR569), including 1 metre at 4.71 g/t; 1 metre at 2.16 g/t gold from 38 metres (hole GFR540); and 5 metres at 1.70 g/t gold from 5 metres (hole BWR020). Multiple intercepts exceed 1.5 g/t gold, confirming widespread mineralisation.

Majestic lies on a northeast-trending shear corridor just west of the Far Eastern Fault, about 2.5 kilometres south of Genesis Minerals’ Barnicoat deposit (230,000 ounces at 1.7 g/t gold). Both share the same banded iron formation host and structural setting, making Barnicoat a direct geological analogue. Reported intercepts are downhole widths, with true widths estimated at 60 to 80%. All significant intersections were calculated at a 1 g/t gold lower cut-off with no upper cut, based on historic WAMEX and proprietary data.

North Pool and Gladiator Prospects Showcase High-Grade Historic Drill Results

The Laverton Gold Project includes high-grade historic intercepts at North Pool and Gladiator prospects. North Pool features intercepts up to 1 metre at 82.2 g/t gold on the Chatterbox Shear Zone, indicating exceptionally high-grade mineralisation. Gladiator contains intercepts up to 43 metres at 2.24 g/t gold, highlighting bulk-tonnage potential. These diverse mineralisation styles range from narrow high-grade zones to broader lower-grade deposits.

North Pool (E38/4061) lies on a major structural feature extending at least 1,700 metres, with only wide-spaced drilling to date, offering scope for infill drilling. Gladiator (E38/2908, E38/4060, E38/4063) remains under-explored with promising historic intercepts. Both will be key targets in the initial exploration program post-acquisition.

Geophysical Review and Targeting to Optimize Drill Campaign

Industrial Minerals has initiated a detailed geophysical review and targeting exercise to prioritise drill targets ahead of the maiden drilling campaign. This process will initially focus on North Pool and Gladiator before extending to Majestic. The review aims to identify new targets and validate existing ones, ensuring drilling focuses on the highest-potential zones, enhancing capital efficiency.

The targeting integrates historic drill data, surface geology, structural mapping, and new geophysical datasets to develop a comprehensive understanding of mineralisation controls. This approach maximizes success probability and guides exploration expenditure allocation. Results will shape the scale and scope of the upcoming drilling campaign, emphasizing areas with the greatest economic gold potential.

Capital Raise Completion Supports Laverton Exploration and Operations

Tranche 1 of a two-part placement raising up to $3 million was completed in the quarter ending 30 June 2026, securing $2.0 million before costs. Tranche 2, up to $1.0 million, remains subject to shareholder approval. Funds will support exploration activities and working capital. Completion of Tranche 1 reflects investor confidence in the acquisition and exploration strategy.

Proceeds will finance the geophysical review, targeting refinement, and maiden drilling campaign. The timing of the capital raise alongside the binding acquisition agreement underscores management’s commitment to advancing the Laverton portfolio. Pending shareholder approval, Industrial Minerals will have the necessary capital to validate historic high-grade intercepts and advance drill-ready targets toward potential resource definition.

Board Restructure with New Managing Director and Non-Executive Director to Accelerate Growth

Industrial Minerals announced a board restructure to enhance exploration execution and shareholder value, appointing Warrick Clent as incoming Managing Director and Mike Dunbar as Non-Executive Director. These strategic appointments precede the Laverton acquisition and planned exploration program, signaling intent to rapidly progress the project.

The board changes coincide with acquisition and capital raise completion, positioning the company with dedicated leadership to advance exploration. While specific experience details were not disclosed, the restructure demonstrates management’s confidence in the Laverton opportunity and commitment to professional stewardship of shareholder capital.

Laverton Tectonic Zone: A Proven Australian Gold District with Over 28 Million Ounces Historic Production

The Laverton Tectonic Zone is a leading orogenic gold district in Australia with historic production exceeding 28 million ounces. It hosts major deposits such as Granny Smith (4.59 million ounces) and Lady Julie (2.4 million ounces), alongside active deposits like Barnicoat (230,000 ounces at 1.5 g/t gold) and Chatterbox Trend (370,000 ounces at 1.5 g/t gold) controlled by Genesis Minerals. This confirms the region’s strong prospectivity and economic viability.

The Archaean granite-greenstone terrane offers a proven gold-bearing environment within the Eastern Goldfields. Industrial Minerals’ portfolio proximity to Genesis Minerals’ deposits and shared geological settings supports the exploration hypothesis for substantial economic gold mineralisation. Established infrastructure and access via the Great Central Road further enhance strategic and operational advantages.

Acquisition Completion Pending Shareholder Approval with Strategic and Financial Implications

The binding agreement to acquire the Laverton Gold Portfolio requires shareholder approval, standard for material ASX-listed company acquisitions. The all-share consideration of A$4,666,667 is significant, with completion contingent on shareholder vote. The board views the acquisition as strategically aligned with diversification goals, while shareholders will assess its merits and financial impact.

The transaction involves issuing new Industrial Minerals shares to Galleon Metals Limited’s sellers. The 2.0% net smelter return royalty on future production is standard industry practice, modestly reducing net economic benefit but considered immaterial by most. Investors must weigh the strategic value of acquiring drill-proven targets in a prolific gold district against share dilution from the all-share deal.