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Highlights
- Strategic Acquisition: Leeuwin Metals acquires the 500-square-kilometre Marda Gold Project, including granted mining leases and exploration prospects.
- Incentivized Deal: Payment terms tied to future milestones, including resource definitions of 500koz and 1Moz.
- Market Reaction: Shares rose 75%, trading at AU$0.105 following the announcement.
Leeuwin Metals Ltd (ASX:LM1) has announced the acquisition of the Marda Gold Project, a significant step toward advancing its portfolio in the resource-rich region of Western Australia. The 500-square-kilometre project, situated 120 kilometres north of Southern Cross, boasts multiple mining leases, historical prospects, and high-grade gold drill intercepts, offering extensive exploration opportunities.
The acquisition was finalized through a binding share sale agreement with Ramelius Resources Ltd (ASX:RMS). As part of the deal, Leeuwin will take over Ramelius’ subsidiary, Marda Operations Pty Ltd, which owns the project.
Incentivized Payment Terms
Ramelius will receive $500,000 worth of Leeuwin shares upon transaction completion. Additional milestone payments are structured as follows:
- $500,000: Payable upon defining a JORC-compliant resource of 500,000 ounces of gold.
- $1,000,000: Payable upon defining a JORC-compliant resource of 1 million ounces.
This incentivized structure ensures that payments align with the project’s success, mitigating immediate financial pressure on Leeuwin while rewarding Ramelius for the project's development.
Exploration and Development Potential
Marda includes a mix of mining, exploration, and prospecting leases, historically explored for gold and iron ore. While past efforts primarily targeted near-mine areas and existing open pits, Leeuwin plans to broaden exploration to underexplored high-grade prospects across the tenements.
Notable unmined assay results from the area include:
- 2 metres at 16.75 g/t gold from 12 metres.
- 3.6 metres at 16.4 g/t gold from 1 metre.
- 1 metre at 27.75 g/t gold from 31 metres.
Executive Chairman Christopher Piggott expressed optimism about the project’s potential. “The acquisition of the Marda Gold Project is a pivotal step for Leeuwin Metals, delivering significant value with minimal dilution to shareholders. This advanced gold project in Western Australia provides an exciting growth platform with substantial exploration potential,” he said.
Market Reaction and Outlook
Following the announcement, Leeuwin’s share price soared by 75%, reaching AU$0.105 as of December 20, 2024.
