Westgold Resources has secured a deal to acquire S2 Resources’ (S2) interests in the Polar Bear project, Eundynie joint venture and Norcott project in Western Australia in exchange for $9 million in shares of S2 subsidiary Polar Metals. S2 has 100, 80, and 100 per cent interests in the three projects, respectively.
Westgold will pay S2 $3 million in cash plus four million ordinary shares, subject to six months’ escrow.
The Polar Bear project spans 151 square kilometres and contains a number of shear zones similar to other gold mineralisation areas in the district.
Peter Cook, managing director of Westgold, believed that the package would fit well into Westgold’s own adjacent Higginsville project.
“The discovery of these deposits by S2 and the significant discovery of the Invincible mine by Goldfield Ltd to the north has opened this region as a new province of gold discoveries in stratigraphy previously under-evaluated for its gold potential,” he said.