Ora Gold Limited (ASX:OAU) has announced the successful completion of its acquisition of 100 per cent of the tenements and other assets comprising the Murchison Project in Western Australia from Sipa Resources Limited (ASX:SRI) and its subsidiary Sipa Exploration NL.
The Company has been busy, also announcing today the next stage RC drill results from its Crown Price Prospect, which were useful in extending the interpreted mineralisation at the Project.
A Strategic Agreement
The two explorers entered into a binding agreement in early August, in a strategic move to bolster Ora Gold’s growth prospects by significantly expanding its Garden Gully Gold Project through the acquisition of Sipa’s Murchison Project.
The acquisition aligns with Ora Gold’s strategic focus to pursue organic and inorganic growth opportunities which it considers value accretive for shareholders.
Figure 1: Garden Gully Gold Project tenure over geology
The consideration for the acquisition agreed upon and ‘completed’ today by both companies includes a cash payment of $600,000 to Sipa, with half paid in full and the remainder three months following the completion.
The agreement also entails the issue of 133,333,334 fully paid ordinary shares to Sipa at a deemed issue price of $0.006 per share, comprising of 66,666,667 shares issued on completion and the remaining shares issued three months following this.
Ora Gold intends to issue the deferred consideration shares in late December.
The issue and agreement of consideration shares was made without shareholder approval and employed the Company’s existing placement capacity.
The Murchison Project
The strategic acquisition enables Ora Gold to take advantage of its new exploration tenure, adding an additional 460 square kilometres of prospective land in the Murchison region of WA to its portfolio.
The Murchison Project encompasses 15 exploration license’s with an additional pending three applications for further licenses.
The exploration ground is highly complementary to Ora Gold’s advanced Garden Gully Project which is contiguous in many areas with major prospective structures striking through currently held ground and tenure acquired under this transaction.
The acquisition agreement also includes well-located and highly prospective tenements near the Reedy Gold Mine and near the Burnakura Gold Plant.
Importantly, the newly acquired tenure lies adjacent to known gold occurrences, overlies fertile structures in the Murchison and Abbotts Greenstone Belts, and represents an untapped territory with limited drill testing of basement rocks.
Ora Gold plans to undertake regional exploration including soil sampling, aircore drilling and targeted RC drilling at various prospects on the newly acquired tenure to ascertain the potential of the Project.
The targets identified by the Company include:
- Abernethy South: The Abernethy shear zone is a key target area which demonstrates strong gold anomalism over 5 kilometres of strike length. These zones are likely to show enriched levels of gold mineralisation with regional exploration initially tasked with better defining these targets.
- West Caledonian: The contacts between mafic, ultramafic, banded iron formation and a pre- tectonic granite are targets for gold mineralisation. The contacts of these units have not been tested by previous drilling.
- West Reedy: The margin of a pre-tectonic granite and a mafic sequence is to be tested with historic drill lines too sparse to adequately test gold mineralisation.
- East Burnakurra: A north east trending boundary between felsic volcanics and a mafic unit has never been drilled with this analogous to the mineralisation setting at the nearby Burnakurra Gold Mine.
Ora Gold’s CEO Alex Passmore said the Company is pleased to announce the completion of the Murchison Project from Sipa Resources.
“The tenure being acquired is complementary to Ora Gold’s existing tenement package in the Murchison – Meekatharra Area and triples the Company’s total land holding,” he said.
“We believe the new tenure has strong potential to host additional high grade gold deposits and we look forward to embarking on a regional exploration program across the various prospects in October 2023.”
OAU’s Australian Stock Exchange-listed share price is currently trading at $0.008 (10:15am UTC+ 8 hours).