Strickland Metals has acquired the Millrose gold project for $10 million, taking its resource base in Western Australia’s Yandal Belt up to 603,000 ounces of gold.
The 346,000-ounce project will be bought from Millrose Gold Mines and Golden Eagle Mining, complementing Strickland’s nearby portfolio.
Millrose is adjacent to Strickland’s Horse Well project and soon-to-be-acquired Yandal East gold project.
Strickland chief executive officer Andrew Bray said this acquisition sets the company up for a bright future.
“The result of this effort is that the company has consolidated the entirety of the north-eastern flank of the Yandal Greenstone Belt and built up a huge footprint at a tier one address,” Bray said.
“Of particular excitement for the company is the fact that this part of the belt is significantly underexplored, despite its resource endowment elsewhere and its regional geology.”
Bray commended the company’s efforts in growing the Yandal Belt resource base.
“It’s been a very busy three months for the new team at Strickland,” he said.
“In a short period of time, we have put together a new board and management team; bought out Silver Lake’s interest in the Horse Well Joint Venture; acquired the Yandal East project from Renegade Exploration; and injected $13 million of fresh capital into the company, with a further $4 million to come from the upcoming rights issue.”
The acquisition will be funded through a $12 million capital raising exercise.
An initial $1 million payment for Millrose will occur upon sign-off, while future payments of $5 million and $4 million will come at three-month intervals thereafter.
Next up for Strickland will be an extensive exploration program, according to Bray
“We are currently gearing up for a major systematic drilling program across this highly prospective gold system, for which we are now very well funded. We are scheduled to commence drilling early in the September quarter of 2021,” Bray said.
The Millrose gold project lies about 30 kilometres east of Northern Star’s 10 million ounce Jundee gold operations.