AUS
NZ
UK
CA
USA
IND
Highlights
- CGN Resources has agreed to acquire 100% of the Desdemona Project, adding 142km² to its Leonora landholding.
- CGR secured district-scale dominance in the Leonora gold region with the acquisition of the Desdemona Project.
- The consolidated tenure is located along strike from multiple Tier-1 gold mines, including Gwalia, King of the Hills and Ulysses.
- The transaction structure includes AUD 500,000 in shares and milestone payments totalling AUD 750,000, preserving capital for exploration.
CGN Resources Limited (ASX:CGR) has executed a binding agreement to acquire the Desdemona Project from ASX-listed Patronus Resources Ltd, significantly expanding its landholding in one of Australia’s highly productive gold districts, the Leonara region. When integrated with CGR’s existing tenure, the combined landholding establishes a district-scale and highly strategic position within the Leonara region.
Strategic Acquisition in a Proven Gold District
The Desdemona Project comprises three mining licences, eight exploration licences and nine prospecting licences covering approximately 142 km². The newly acquired tenure adjoins CGN’s existing Leonora Gold Project and extends the company’s consolidated holdings to a dominant 386km2 footprint across the Christmas Well and Panhandle projects.
The acquired landholding is situated along the same geological trend as several major gold mines, including the Gwalia mine (>8 Moz), King of the Hills (>4 Moz) and Ulysses (>2 Moz).
Following this acquisition, CGR will control a district-scale landholding comparable to those held by leading Leonora operators, including Genesis Minerals and Vault Minerals.
Transaction Structure and Consideration
The acquisition has been structured to preserve capital for exploration activities. Consideration includes the issue of 5,000,000 CGR shares to Patronus Resources, representing approximately 4.3% of the fully diluted capital structure, valued at around AUD 500,000 based on prevailing market prices and escrowed for 12 months.
Additional milestone-based payments include AUD 250,000 upon declaration of a JORC 2012-compliant Mineral Resource exceeding 100,000 ounces of gold, and AUD 500,000 payable following a decision to mine. Completion remains subject to customary third-party consents on selected tenements.
Exploration Upside and Historical Data
Much of the Desdemona Project area has not been systematically explored since the early 2000s and exploration activity were focused primarily on shallow oxide targets. Transported cover has limited previous exploration, leaving large portions of the tenure under-explored despite multiple gold intercepts recorded in historical drilling.
Patronus Resources has undertaken extensive historical data compilation, identifying several advanced targets. When combined with CGR’s existing technical datasets across the Leonora portfolio, the consolidated data delivered a pipeline of priority targets suitable for staged exploration programs. In addition to gold, the tenure includes walk-up targets for nickel and platinum group elements at the Kingfisher area.
Next Steps and Regional Portfolio
Following completion of the acquisition, the company plans to finalise tenure transfers, establish new heritage agreements, complete detailed targeting studies, and commence initial field reconnaissance, initiate heritage surveys and drill planning across the expanded Leonora landholding.
CGR Shares Rally
CGR shares were trading 5.26% higher at AUD 0.10 per share at the time of writing on 28 January 2026.
