Gold aspirant De Grey Mining has executed a deal to acquire the Indee Gold project in the Pilbara from Northwest Non-Ferrous Australian Mining (NNAM) for $15 million.
The acquisition, more than 12 months in the making, allows De Grey to consolidate ownership of its Pilbara gold project, which will grow to consist of more than 1.2 million ounces (Moz) of established gold resources.
De Grey views the Indee Gold project as a key pillar of its overall development plan, providing additional resources and critical mass to advance towards future gold production.
The combined projects include over 1300 square kilometres of tenements, including granted mining leases, exploration upside and recently identified conglomerate gold potential.
They provide De Grey with a total resource of 23.88Mt at 1.6 grams a tonne (g/t) for 1.21Moz.
De Grey chairman Simon Lill said the company secured the right to evaluate the development potential in combining the Turner River and Indee Gold assets early last year.
“Now just 12 months later after significant and successful exploration activities and scoping studies, the company has committed to acquiring the Indee Gold project,” Lill said.
“The next 12-month goal is to advance detailed feasibility studies and commence approvals to establish the Pilbara’s next gold mining operation.”
The agreement initially involved a $100,000 exclusivity fee when the deal was proposed in January 2017.
De Grey last week made an initial deposit of $1.5 million for the acquisition and will pay NNAM a further $10.4 million when the deal is settled in January next year. On settlement, De Grey will also issue NNAM with $3 million in shares.