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Highlights
- Great Western Exploration (GTE) divests the Yandal West project to Albion Resources (ALB).
- Transaction involves an all-scrip deal and performance rights issuance.
- Yandal West is situated in the highly prospective Yandal Greenstone Belt.
Great Western Exploration (ASX:GTE) has finalized a binding agreement to transfer its Yandal West gold project in Western Australia to Albion Resources (ASX:ALB). This strategic divestment allows Great Western to concentrate on its core projects while retaining future upside through a shareholding in Albion.
The transaction, structured as an all-scrip deal, is expected to conclude in January. Under the agreement, Albion will issue 22.22 million shares at a deemed price of $0.045 per share, alongside 30 million performance rights, pending shareholder approval.
Key Transaction Details
The performance rights will be distributed in two stages. The first 15 million will be granted upon confirming a minimum 250,000-ounce gold resource at Yandal West with a grade of at least 0.75 grams per tonne. The remaining rights will be issued upon a decision to mine.
Directors of Albion Resources, collectively holding 18% of the company’s shares, have expressed their support for the acquisition.
Great Western’s Core Focus
Great Western’s managing director emphasized that the divestment aligns with the company’s strategic goals. It allows them to prioritize exploration at Oval South, a copper-gold discovery, as well as at Sumo niobium and Juggernaut volcanic-hosted massive sulfide systems. These assets are considered highly prospective and integral to the company’s growth plans.
Yandal West, comprising three tenements spanning 61 square kilometers in the Yandal Greenstone Belt, was deemed a non-core asset. Its location near renowned gold mines such as Bronzewing and Jundee underscores its geological potential.
Albion’s Exploration Ambitions
Albion Resources plans to focus on the drill-ready Barwidgee Fault within Yandal West. This area is believed to host a significant gold-mineralized system along a 3-kilometer strike length. Previous drilling by Albion delivered promising results, including 4 meters at 9 grams per tonne gold from 39 meters.
The Yandal West project also contains several high-grade gold targets, including Barwidgee Fault, Ives Find, and May Queen, which will undergo priority testing.
With this acquisition, Albion Resources is set to expand its exploration footprint under the guidance of experienced mining executive Chris Tuckwell, who will join the board upon transaction completion.
