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Highlights
- Sipa Resources secures 100% interest in gold exploration projects across South Australia and Western Australia.
- Deal valued at up to AU$2.2 million in cash and shares; new capital raising of AU$1.75 million announced.
- Shares climb 14.3% to 1.6 cents following the news.
Sipa Resources Limited (ASX:SRI) has unveiled a game-changing acquisition, entering into binding agreements to acquire a 100% stake in advanced gold exploration projects located near major gold deposits and mining infrastructure in South Australia and Western Australia. This strategic move, coupled with a capital raising initiative, has driven a significant surge in the company’s share price, which rose 14.35% to 1.6 cents on December 19.
Project Overview
The newly acquired projects cover a combined area of approximately 759 km² and are strategically located near major gold operations:
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South Australia Projects (729 km²):
- Tunkillia North, Nuckulla Hill, and Skye tenements, located adjacent to the 1.5-million-ounce Tunkillia gold deposit and the Challenger gold mill.
- Existing native title and land access agreements are in place, expediting exploration activities.
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Western Australia Project (30 km²):
- Crown Project, positioned in a prolific gold-producing region with significant exploration potential.
Acquisition Details
The total consideration for the acquisition is up to AU$2.2 million, payable in cash and shares. This agreement solidifies Sipa’s position as a key player in highly prospective gold regions, offering proximity to established infrastructure and significant resource deposits.
As part of the transaction, Stephen Biggins, former Managing Director of Core Lithium, will become Sipa’s largest shareholder and join the company’s board. Biggins’ addition is expected to bring extensive expertise and leadership to Sipa’s exploration and development strategy.
Capital Raising and Placement
To support the acquisition and fund exploration programs, Sipa has secured firm commitments for a AU$1.75 million placement, subject to shareholder approval. The placement is structured as follows:
- Shares are priced at AU$0.013 each with a 1-for-2 free-attaching option exercisable at AU$0.026 within 24 months.
- All board members are participating in the placement, signaling strong internal confidence in the company’s future.
Market Reaction
Following the announcement, Sipa’s shares experienced a sharp 14.3% rise to 1.6 cents.
Next Steps
The funds raised will be allocated toward:
- Initial exploration activities across the newly acquired tenements.
- Covering acquisition costs and advancing the company’s broader exploration strategy.
