Regis Resources has acquired 35 Western Australian gold tenements from Duketon Mining for $25 million, increasing its landholding by 2000 square kilometres.
Perth-based Regis now controls 90 per cent of the gold rights in the Duketon Greenstone Belt, near Laverton in the Goldfields.
Regis managing director Jim Beyer said the considerable expansion of the company’s landholding around its three mills provided an opportunity to invest further in exploration to expand the resource base and extend the mine life of the Duketon Operations.
“Being able to accelerate greenfields exploration in an area which has previously been underexplored and is host to major shear zones and the extension of our existing orebodies is an immediate opportunity for the company,” Beyer said.
Regis, which will secure the acquisition for $20 million in cash and $5 million in contingent payments, will explore multiple advanced gold exploration prospects at Moolart Well, Garden Well and Rosemont.
The company will also look to define the extent of gold mineralisation at Lancefield North, Mckenzie Well, and Golden Star.
Duketon will retain the rights to nickel over five of the tenements, along with mining licence M38/1252, which contains 71,000 tonnes of nickel. The company believes the nickel rights area retained are the most prospective areas for nickel.
Duketon managing director Stuart Fogarty said the deal would allow the company to focus its efforts on maximising value of its nickel resources.
“Realising the nickel potential of the region was the primary objective of the company at the IPO (initial public offering) and has always remained a significant value driver for shareholders,” Fogarty said.
“This deal significantly reduces our ongoing tenement holding costs. Outside of M38/1252 in the areas of nickel rights, we have zero holding costs but retain 100 per cent access to explore for nickel and in the event of a discovery establish mining operation
“This allows us to be in a unique position of being able to execute our exploration programs without being driven by the underlying tenement expenditure conditions.”