Junior explorer Alt Resources has secured a deal to acquire the Mt Ida gold project in Western Australia’s Goldfields region from Latitude Consolidated for $2 million in cash and shares.
Alt will make the acquisition by paying Latitude $1 million in cash and issuing it with $1 million of shares and options.
The sale involves the entire tenement package at Mt Ida, including the Quinn’s Mining Centre, Mt Ida South and the Mt Ida joint venture projects.
According to Alt, the acquisition will open up significant exploration and development potential for the company.
“The expansion of Alt’s portfolio through this acquisition, as well as the recent option to purchase agreement by the company for the Bottle Creek gold mine is in-line with the company’s strategy to work towards becoming a gold producer,” Alt chief executive James Anderson said.
“The Mt Ida South and Quinns Projects contain 97,000 JORC compliant gold ounces in satellite ore bodies.
“These are very accessible to the Bottle Creek gold mine site and when coupled with known mineralisation at Bottle Creek, the company views the area to have the potential to support sufficient mining production for a processing plant on the existing Bottle Creek mining leases.”
Latitude chairman Tim Moore described the sale as a strategic decision aimed at providing the company with the requisite near-term flexibility and funding to actively pursue other opportunities.
“Importantly, the divestment also allows Latitude’s management team to narrow its focus towards unlocking value from its remaining highly prospective gold assets including the Gecko North project and the recently acquired Levers Well project in the Pilbara,” Moore said.