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Highlights
- Strategic Acquisition: TG Metals has executed a Sale and Purchase Agreement (SPA) to acquire an 80% operating interest in the Van Uden Gold Project in Western Australia.
- Attractive Transaction Terms: The deal includes an upfront cash payment of A$2.5 million, an equity component valued at A$1 million, and a deferred cash payment of A$0.5 million.
- Portfolio Expansion & Diversification: The acquisition adds nine tenements to TG Metals’ holdings, diversifying its commodity base by introducing gold to its established lithium and nickel projects.
- Operational Advantages: The project benefits from proximity to established mining infrastructure, including processing plants and grid power.
- Next Steps & Conditions: The acquisition is subject to customary conditions precedent, with drill planning already underway and the share price surging by 52.4% to 16 cents.
TG Metals Limited (ASX:TG6) has taken a significant step in expanding its portfolio by entering into a binding SPA to acquire an 80% operating interest in the Van Uden Gold Project from Montague Resources Australia Pty Ltd. With Barto Gold Pty Ltd retaining the remaining 20% equity interest, the Van Uden Gold Project is strategically located on the Forrestania Greenstone Belt in Western Australia, approximately 90km east-northeast of Hyden and 120km south of Southern Cross.
The transaction is structured with an upfront cash consideration of A$2.5 million, which will be funded from existing cash reserves. In addition, Montague will receive 5,714,285 fully paid ordinary shares in TG Metals, valued at A$1 million based on a deemed issue price of A$0.175 per share—representing a 67% premium to the closing price on 28 February 2025. These shares will be held in a voluntary escrow for 12 months. A further A$0.5 million is deferred and will be payable on the earlier of 12 months from completion or upon the company completing an equity raising of at least A$1 million.
This acquisition is set to be accretive to TG Metals’ existing portfolio, increasing tenement holdings by nine, including four granted Mining Leases. The move not only diversifies the company’s asset base by adding a new gold asset but also enhances its operational footprint. The Van Uden Gold Project benefits from excellent logistical attributes, being located adjacent to sealed roads and grid power. Its proximity to operating gold processing facilities at Marvel Loch and the Care & Maintenance site at Westonia - Edna May further underscores its strategic significance. Moreover, the site is only 130km from TG Metals’ established Burmeister lithium deposit at the Lake Johnston Project.
From an operational standpoint, the Van Uden Gold Project offers the potential for near-term revenue generation through toll treatment opportunities, thanks to its accessible near-surface gold mineralisation. The project also provides promising drill targets at Gold City and along the Van Uden Group’s existing gold mineralisation, paving the way for a rapid pathway to JORC 2012 compliant resources by integrating historical drilling data with new exploration initiatives.
The completion of the acquisition is subject to certain conditions precedent, including the execution of Deeds of Assignment and Assumption for third party Royalty Deeds, securing Ministerial Consent for the transfer of tenements under the Mining Act, and ensuring there is no objection from the ASX regarding the share issuance. TG Metals’ geology team is already revising the project database and has commenced drill planning for the first company-led drilling campaign.
In response to the positive news, TG Metals’ share price experienced a remarkable surge, jumping 52.4% to 16 cents on 5 March 2025
