Lancaster Resources Inc (CSE:LCR, OTCQB:LANRF) announced on Wednesday it has inked an agreement to acquire 100% of the Lake Cargelligo Gold Project in New South Wales, Australia, expanding its footprint into one of the country’s most prolific gold regions.
The project, located in the historic Cobar mining district, covers more than 28,768 hectares under a single exploration license application and includes multiple historical high-grade gold and silver occurrences, the company said.
The Lake Cargelligo property includes more than 25 kilometers of prospective strike and three primary target zones. Historical sampling at the site has returned results of up to 204 grams per tonne (g/t) gold and 273 g/t silver from rock chips, and 16 meters at 5.83 g/t gold and 7.20 g/t silver from channel sampling.
The company plans to launch an initial exploration program in the third quarter of 2025, focusing on geophysics, geochemical sampling, and drill targeting. No modern geophysical surveys have been conducted at the site to date.
“With gold at all-time highs and global uncertainty driving demand, this is a timely and strategic acquisition for Lancaster,” said Andrew Watson, vice president of engineering and operations.
“Lake Cargelligo sits in a proven gold-producing region but remains underexplored.”
Deal terms
Under the terms of the deal, Lancaster will acquire the project from Sunbird Resources and Mac Minerals for a total of C$210,000, including C$10,000 in cash and 10 million common shares priced at C$0.02 each. The agreement also includes a 2% net smelter return royalty and contingent milestone payments of up to C$3.68 million.
Closing is subject to a C$400,000 financing, which the company plans to raise through a non-brokered private placement. The offering will consist of units priced at C$0.02, each comprising one common share and one share purchase warrant, exercisable at C$0.05 for three years.
Lancaster also announced additions to its technical team, with Ross Brown, formerly of Inca Minerals and Oklo Resources, joining as vice president of exploration, and Rob Heaslop appointed as country manager for Australia.