Greatland will pay A$25,000 of the consideration in cash and the rest will be satisfied by the issue of 6.5mln shares to the vendor, Peter Wiltshire.
Black Hills lies right next door to Greatland’s Havieron licence, and is considered to have high potential for hosting gold deposits similar to the large Telfer gold deposit situated some 30 kilometres (km) to the west.
Previous work on Black Hills by Newcrest Limited, which has worked the Telfer deposit, has outlined several zones of gold mineralisation, with rock chip results of up to 90 grams per tonne (g/t) gold and drill intercepts including four metres at 7 g/t gold,
The acquisition increases the size of Greatland's Paterson project to more than 385 square km prospective for iron-oxide-copper-gold and Telfer style deposits.
"Black Hills represents an important strategic addition to Greatland's significant and expanding position in the Paterson region,” said Gervaise Heddle.
“Historical exploration at Black Hills has demonstrated high grade gold near surface and the potential for the Black Hills licence to host gold deposits similar to Telfer. The acquisition is a continuation of our strategy to target under-explored areas with significant potential and to increase the scale of the company's exploration campaigns at our key projects," he added.
Shares in Greatland were up 6.8% at 1.86p in mid-morning trade.