Strickland Metals Ltd has “one of the strongest balance sheets in the junior exploration space” after completing the $41 million sale of the Millrose Gold Project in Western Australia to Northern Star Resources Ltd.
Completion of the sale has resulted in Strickland receiving a further $39 million from Northern Star, adding to the $2 million cash deposit previously received.
1.5 million NST shares to boot
Adding further to the company’s assets will be the 1.5 million NST shares received as part of the transaction.
NST shares today have traded up to $11.68 but Strickland will have to wait to realise any value as the shares are subject to 12 months escrow.
“Momentous step”
STK's chief executive officer Andrew Bray said: “Completion of the Millrose sale transaction with Northern Star is a momentous step in the development of Strickland.
"We now have one of the strongest balance sheets in the junior exploration space, along with a portfolio of very promising, advanced exploration projects."
Northern Star.has secured the Millrose Project east of its Jundee Mill.
Exploration campaigns
Strickland will now begin exploration campaigns to advance and upgrade its existing portfolio of projects.
"Work is commencing imminently on a number of prospects at the Yandal Gold Project, as well as at Iroquois and the wider Earaheedy base metals project," Bray said.
"An update will be provided to the market next week on these programs.”
He said the company’s balance sheet also enabled Strickland to consider acquisitions complementary to its existing projects.
“Value accretive opportunities”
"Given the lack of capital available to many junior resource companies, management believes there are potentially numerous value accretive opportunities to be considered in coming months.
"The company will update the market in due course should any of these opportunities materialise.”
As a result of the transaction, NST has acquired Strickland's interest in the Millrose Gold Project, including a mineral resource of 6 million tonnes at 1.80 g/t gold for 346,000 ounces.
Millrose is around 30 kilometres east of Northern Star’s Jundee Mill and represents further gold growth opportunity for the successful gold producer with a market cap of approximately $13.35 billion.