Resource and Investment NL (ASX: RNI) is on track to become an Australian gold producer with a proposed A$35 million acquisition that will increase the company’s footprint in the Bryah-Padbury Basin by more than five times.
The deal would increase Resource and Investment NL’s footprint in the Bryah-Padbury Basin to 2,252 square kilometres, including 100 kilometres strike of Narracoota Volcanics, which also host Sandfire Resources’ (ASX: SFR) world class DeGrussa copper-gold deposit.
Resource and Investment NL has signed a deal with BlueCrest Mercantile Master Fund to acquire Grosvenor Gold, which will give Resource and Investment NL access to a 1.2 million ounce gold JORC Resource and a carbon-in-leach gold processing plant.
Grosvenor Gold owns the Fortnum Gold project and surrounding exploration tenements covering 1,791 square kilometres in Western Australia’s Bryah Basin.
The A$35 million consideration to be paid to BlueCrest will comprise A$20 million in cash and A$15 million worth of shares in Resource and Investment NL.
Argonaut has been engaged to conditionally underwrite A$30 million in equity funding, while New Holland Capital will arrange a debt facility of about A$20 million to fund plant re-comissioning and provide additional working capital.