Metals explorer Greatland Gold PLC (LON:GGP) has acquired the Havieron gold-copper project in Western Australia in a deal that cost it A$750,000.
Greatland will make an initial cash payment of A$25,000 and issue 65.5mln shares worth around A$225,000 to Pacific Trends Resources to acquire the project.
The explorer will then issue a further 145mln shares worth around A$500,000 to Pacific Trends if it decides to commence mining at the project.
“We believe that the initial consideration of A$25,000 in cash and the issuance of 65,490,000 shares represents a very modest initial payment given the potential at Havieron,” said chief executive Callum Baxter.
“Havieron has demonstrated high grade gold and copper mineralisation and provides Greatland with a walk up resource definition drill target in addition to several regional exploration targets.”
Previous drilling back in the nineties by Aussie mining giant Newcrest Mining Limited (ASX:NCM) intersected “significant Au-Cu skarn style mineralisation”, Greatland said.
Havieron is located just 40km to the east of Newcrest’s Telfer gold mine in the Paterson Province of Western Australia, which has produced 27mln ounces of gold since operations started back in 1977.
Other big players are also in the area, with Rio Tinto PLC (LON:RIO) recently buying up some ground adjacent to Havieron.
Shares were up 10% to 0.2p.