Gascoyne Resources Ltd (ASX:GCY) has entered into a binding agreement to sell the gold and mineral rights (excluding iron ore and ferrous minerals) of tenement E51/1681 to E79 Gold Mines Ltd, a company with a large landholding adjacent to the tenure in the Murchison region of Western Australia.
E79 will offer cash consideration of $50,000 and shares in E79 Gold Mines equal to $100,000 determined with a volume-weighted average price (VWAP) for the five trading days prior to completion of the agreement.
E79 Gold Mines will also be responsible for the minimum spend on the tenement E51/1681 for the next three years.
The transaction will increase E79's Jungar Flats Project landholding by 37% to 541 square kilometres.
Recent exploration on E51/1681
Recent exploration on E51/1681 has mainly focused on iron ore potential, having identified thick zones of iron.
Gascoyne will retain the iron and ferrous mineral rights for the tenement, meaning the company could potentially generate value with little capital expenditure or effort should the agreement bear fruit.
E79’s Jungar Flats Project area showing the new acquisitions in red with existing tenements in blue.