Meeka Metals Ltd (ASX:MEK) has completed the sale of the Gecko North Project (E15/1587) to LithGold Minerals Ltd (formerly Origin Gold Mines Ltd).
Meeka will bank $230,000 in cash, plus 1.5% net smelter return royalty over all minerals extracted from the property.
The company has already received $130,000, with a further $100,000 due in February 2023.
Freed up to advance drilling and exploration
The sale was part of Meeka’s strategy for disciplined capital allocation.
The money gained will be used to advance drilling and development activities within its portfolio of high quality 100%-owned projects across Western Australia.
“We continually evaluate our portfolio of high-quality projects to ensure capital is allocated where it will deliver most value. Where there is an opportunity to monetise noncore assets at fair value, and refocus capital on higher value outcomes, we will act on those opportunities,” Meeka managing director Tim Davidson said.
“With material results being delivered from our ongoing work in the Murchison, successful gold drilling in the Albany-Fraser and the emerging opportunity in rare earths, Gecko North no longer fit into our portfolio.”
News on the horizon
With its time and cash freed up, Meeka has a busy schedule ahead over the next six months and beyond and investors can expect plenty of news:
- August – September 2022: Assays from the remaining 13,796 metres of drilling for high-grade rare earths at Circle Valley.
- August – October 2022: Gold assays from Murchison Gold Project drilling.
- September 2022: Pre-feasibility study for the Murchison Gold Project.
- September 2022: Audited annual report.
- October 2022: Quarterly activity report.
- December 2022: Gold assays from Circle Valley (Anomaly A) extensional drilling.
- January – March 2023: Rare earth assays from Circle Valley infill drilling.
About Meeka
Meeka is a gold and rare earths company. Its flagship Murchison Gold Project has a combined 343-square-kilometre landholding in the prolific Murchison Gold Fields and hosts a large high-grade 1.1=million-ounce JORC resource. The company is actively growing these resources while also progressing toward production. The release of the Murchison Gold Project scoping study in December 2021 outlined a robust project that produces more than 420,000 ounces of gold.
Meeka also owns the Circle Valley Project in the Albany-Fraser Mobile Belt (also host to the Tropicana gold mine – 3 million ounces of past production). Gold mineralisation has been identified in four separate locations at Circle Valley and presents an exciting growth opportunity, which is being aggressively pursued.
One the rare earths front, Meeka controls the Cascade Rare Earths Project (2,068 square kilometres) in a region rapidly emerging as a highly prospective clay rare earths province. Importantly, the results to date contain high levels of permanent magnet metals being neodymium-praseodymium oxides. These metals are geopolitically critical, and Meeka intends to accelerate its understanding of Cascade by commencing initial metallurgical work. Furthermore, drilling will be ongoing.