Sultan Completes Acquisition Of 100% Of Lachlan Fold Belt Tenure

  • Jun 30, 2020 AEST
  • Team Kalkine
Sultan Completes Acquisition Of 100% Of Lachlan Fold Belt Tenure

Summary

  • Sultan acquired 100% of Colossus Metals and its assets in LFB
  • High grade Gold-Copper anomalies identified (>1.5 kms by 0.1 kms) at Big Hill Deposit
  • 5 by 0.3 kms Unexplored gold anomaly Identified at Tucklan
  • Sultan outperforming most peers from LFB on ASX

Sultan Resources Ltd (ASX:SLZ), the Gold and base metals explorer from Western Australia, announced the expansion of its portfolio with the completion of 100% acquisition of Colossus metals and its Macquarie Arc Copper-Gold Project in the Lachlan Fold Belt.

With the completion of the Colossus Metals acquisition, Sultan now controls highly prospective mineral opulent tenure extending to almost 330 square-kilometres in the world-renowned Lachlan Fold belt.

Sultan Goes Stronger with LFB Exposure; Delivered 90% Returns to Investors in 6 Months: Must Read

So far, Sultan has already released the soil and rock chip sampling program results at the Big Hill and Tucklan deposits indicating presence for potentially large-scale Cu-Au porphyry system. The soil and rock chip sampling program from the Ringaroo prospect are ongoing, and the results are expected soon.

Regional Location Map – Big Hill, Tucklan and Ringaroo over the prospective Macquarie Arc sequence Source: Sultan Resources

Regional Location Map – Big Hill, Tucklan and Ringaroo over the prospective Macquarie Arc sequence Source: Sultan Resources

The Macquarie Arc project is located between Alkane Resources’ (ASX:ALK) Boda discovery and Newcrest Mining’s (ASX:NCM) Cadia-Ridgeway Gold Copper operations. 

The other mega projects of Sultan are as follows-

  • Lake Grace Ni-Cu-Au Project stretches across 690 square kilometres and 5 tenements. The project area is further divided into 2 major sub-divisions, including Lake Grace Gold and Lake Grace Nickel-Cobalt project. A recent 911 metres drilling program uncovered widespread gravity anomalies.

The project shares the mining neighbourhood with various established precious and battery metals operations, including Ramelius Resources’ (ASX:RMS) Tampia Gold project and Golden Mile Resources’ Quicksilver Ni-Co project.

  • Thaduna Gold Copper Project holds 2 granted tenements stretching over 22 square kilometres in the Murchison Goldfields.
  • East Tallering Gold Project extends over 67 square kilometres in the Tallering Greenstone belt. The mining project is located in close proximity to Adaman Resources’ Snake Well Gold Project.
  • Dalwallinu Gold project stretches over 167 square kilometres along the 20 kms long strike of the Yerlering fault corridor.

Sultan is currently progressing on negotiations with landowners to advance on the field exploration programs at the East Tallering and Dalwallinu Gold projects.

Sultan strengthens its presence in Lachlan Fold Belt: Read Here

Background of the Acquisition Transaction

The acquisition of Colossus Metals required a one-time exclusivity payment of $50,000 towards the prospective copper-gold project. Further, the acquisition agreement included several other key terms-

  • A cash payment of $100,000
  • Issuance of fully paid 10 million ordinary shares, at an issue price of $0.075 a share, as a payment in the capital of the company contingent on a voluntary escrow period 6 months from the signing of the binding agreement.

Sultan will also be liable to issue 1 million fully paid ordinary shares as payment for identification of the project and their role in acquisition negotiation to Xcel Capital and Arq Capital. Additionally, a 2% NSR (Net Smelter Royalty) would be paid to the vendors or their nominees for their corresponding tenements.

 Sultan’s Board Excited on pursuing new Synergies

The board and management mark the completion of the acquisition as a milestone for the explorer and is excited to pursue the exploration play on the Colossus’s project. Sultan aims the acquisition in the LFB to expand its portfolio and complement the current portfolio.

Sultan is well placed to undertake and deliver results from exploration plays such as the Macquarie Arc Gold Copper project.

On 30 June 2020, Sultan closed at $0.135 a share with a market capitalisation of $7.91 million.

All financial figures pertain to Australia Dollars unless stated otherwise.

 


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