Echo Resources has bolstered its gold portfolio in Western Australia after completing a takeover of Metaliko Resources.
The acquisition provides Echo with ownership of the two million tonnes per annum Bronzewing processing facility, which is within Metaliko’s Yandal gold project in the north eastern Goldfields of WA.
Echo is advancing the Julius gold project, which is about 75 kilometres north of Bronzewing, also part of the Yandal gold belt. Echo is targeting first production at Julius in the middle of this year.
The takeover involved one Echo share for every 2.5 Metaliko shares, valuing the target at about $38.9 million.
Echo chief executive officer Simon Coxhell said the completion of the deal resulted in the combination of over 1600 square kilometres of underexplored tenement holdings, which currently contain about 950,000 ounces of gold.
“In addition, Echo now owns the two million tonnes per annum Bronzewing processing facility and associated infrastructure for the treatment of Julius and surrounding gold deposits in the district,” Coxhell said.
“The ability to monetise our advanced gold resources will underpin the progress of Echo going forward and provides an excellent starting point for the development of an emerging and substantial gold mining and production company.”
Metaliko becomes a wholly-owned subsidiary of Echo, which will expand its board to five members with completion of the deal.