Peako Ltd (ASX:PKO) has agreed to acquire a 100% interest in a portfolio of gold exploration projects in Saudi Arabia, in a strategic shift into one of the world's newest gold exploration frontiers.
The binding agreement covers 10 exploration licences across six project areas spanning 862 square kilometres in the Central Arabian Gold Region, an underexplored district that hosts several operating gold mines and multi-million-ounce deposits. The acquisition will be accompanied by a $5.17 million capital raising to fund exploration and growth initiatives.
Location of Saudi Arabia and the Arabian-Nubian Shield, showing major regional deposits1 and location of Peako’s proposed gold projects.
Chairman Gernot Abl described the transaction as a major step for the company, providing exposure to multiple drill-ready targets, historical high-grade gold results and district-scale discovery potential.
“This acquisition is a major step for Peako. It gives the Company exposure to a large and under-explored gold district with multiple historical gold intercepts, several immediate drill ready targets and genuine district-scale discovery potential.
"The portfolio represents a compelling entry into one of the world's most prospective emerging gold provinces. We are securing projects near operating gold mines, with high-grade gold mineralisation already identified, and a technical team with the expertise and track record to unlock their potential. With this transaction Peako, has assembled a strong team with deep in-country experience and a track record of discovery. Our early focus will be on the compelling drill-ready targets already identified across Sukhaybarat South, Jabal Jumaymah and Wadi Jarir, while broader exploration builds the next wave of prospects across the portfolio.
"Saudi Arabia is emerging as a globally significant mining destination, supported by attractive government incentives and underscored by the arrival of major miners including Barrick, Zijin and Hancock Prospecting. With a low upfront acquisition cost, milestone-based consideration and a funded 2026 work program, we believe this transaction gives shareholders strong discovery leverage in a newly evolving major gold frontier, with high-impact drilling across multiple prospects planned for 2026.”
Portfolio brings drill-ready targets and near-mine exposure
The acquired portfolio is located within 65 kilometres of operating gold mines, including projects adjacent to the 2-million-ounce Sukhaybarat Gold Mine and near the 3.4-million-ounce Bulghah Gold Mine.
Peako highlighted three priority prospects with historical drilling results ready for immediate follow-up:
- Sukhaybarat South Western Prospect: 4 metres at 11.32 g/t gold and 5 metres at 5.6 g/t gold;
- Jabal Jumaymah: 7 metres at 10.12 g/t gold, 10.9 metres at 2.37 g/t gold and 7 metres at 5.44 g/t gold; and
- Wadi Jarir: 2 metres at 13.53 g/t gold within a broader 26-metre interval grading 0.70 g/t gold.
All three prospects remain open along strike and at depth and will form the focus of early drilling campaigns.
Central Arabian Gold Region.
Flagship projects offer multiple growth opportunities
Sukhaybarat South is expected to become Peako's flagship Saudi asset. The project sits on the same geological structures as the neighbouring Sukhaybarat mine and contains three priority prospects, including a 7-kilometre gold-in-soil anomaly at the Eastern Prospect and outcropping mineralisation at the Central Prospect.
Jabal Jumaymah hosts shallow high-grade mineralisation supported by rock chip samples returning up to 41 g/t gold, while Wadi Jarir contains broad gold zones that have seen little follow-up despite encouraging historical drilling results.
Beyond the drill-ready targets, Peako has secured a pipeline of earlier-stage opportunities including Bulghah East, where a 10-kilometre gold-in-soil anomaly parallels the structure hosting the Bulghah mine, and Ad Dirabi, a sheeted-vein gold system with historical rock chips grading up to 33.6 g/t gold.
Sukhaybarat Project neighbouring the 2Moz Sukhaybarat Gold Mine.
Placement to fund drilling and growth
Alongside the acquisition, Peako has secured firm commitments to raise $5.17 million through a placement priced at $0.004 per share. Directors and management have committed $625,000 of the total raising, subject to shareholder approval.
The placement will be completed in three tranches, with the majority requiring shareholder approval at an extraordinary general meeting expected in late July 2026.
Peako intends to use the money to complete the acquisition, advance exploration across the Saudi portfolio, continue work at its Australian Kimberley projects and strengthen working capital.
Indicative allocations include:
- $650,000 for drilling at Sukhaybarat South, Jabal Jumaymah and Wadi Jarir;
- $250,000 for mapping, soil sampling and geophysics across the Saudi portfolio;
- $600,000 for exploration at Kimberley projects;
- $100,000 cash consideration for the acquisition; and
- $3.9 million for working capital.
What happens next?
Peako plans to begin exploration immediately after completion of the acquisition, with drilling at the three priority projects targeted to start in the third quarter of 2026. Concurrent surface exploration programs will also seek to generate new targets across the broader portfolio.
The company is also strengthening its Saudi-focused leadership team, appointing experienced geologist Marcus Harden as a non-executive director and Saudi-based exploration specialist Oliver Jones as exploration manager for the kingdom.
About Peako
Peako is an Australian exploration company with projects in Western Australia's Kimberley region. Through the Saudi acquisition, the company is positioning itself as a gold-focused explorer targeting large-scale discoveries in the underexplored Central Arabian Gold Region. The strategy combines near-term drilling opportunities with a broader pipeline of regional targets and potential future licence acquisitions in Saudi Arabia.