Lancaster Resources Inc (CSE:LCR, OTCQB:LANRF) announced that it has received final approval from the Canadian Securities Exchange for the acquisition of the Lake Cargelligo gold project, located in New South Wales, Australia.
With all key conditions satisfied, Lancaster said it expects the acquisition to close shortly.
“With gold reaching record highs and demand remaining robust, we believe Lake Cargelligo is a timely and strategic addition to our portfolio,” Lancaster CEO Andrew Watson said in a statement.
“Our team is preparing a Phase 1 exploration program for Summer/Fall 2025 aimed at unlocking the project’s excellent geological and geochemical potential.”
The Lake Cargelligo gold project consists of a single, contiguous claim covering approximately 28,768 hectares. The property features over 25 kilometers of prospective strike with three primary target zones.
Historical exploration on the project has yielded high-grade results, including rock chip samples reporting up to 204 grams per ton of gold and 273 grams per ton of silver. Channel sampling has returned results of up to 16 meters at 5.83 grams per ton of gold and 7.20 grams per ton of silver.
In consideration for the project, Lancaster will pay $10,000 in cash and closing and issue 10 million shares, subject to voluntary resale restrictions.
The vendors will retain a 2% net smelter returns (NSR) royalty on all mineral production at the project. Lancaster has the option to repurchase 1% of the NSR for $2 million.
The company has also agreed to milestone payments totalling up to $3.68 million, contingent on achieving specific project developments.
Concurrently, the company has completed a non-brokered private placement financing of $400,000. The financing was fully subscribed.