Westgold Resources will give Ora Gold’s Garden Gully gold project in Western Australia a leg up with a $6 million strategic placement.
The companies have also entered into a binding agreement for a strategic co-operation relationship to commence once the placement is complete.
The focus of the funding will be Ora’s Crown Prince prospect, which is the most advanced prospect at the project.
“We are very pleased to announce the Westgold strategic alliance and placement, which provides a short and tangible pathway to production and cash flow from Crown Prince,” Ora Gold chief executive officer Alex Passmore said.
“Ora and Westgold will work collaboratively over the next few months to define the development timetable.
“This alliance with a large regional operator with extensive processing infrastructure gives us strong confidence in the potential for future economic extraction of other advanced projects within our tenure.”
Upon completion of the strategic placement, Westgold will emerge as a 18.7 per cent shareholder of Ora on an undiluted basis, and a 15 per cent shareholder on a fully diluted basis.
Westgold and Ora will also work towards an purchase agreement for any ore produced at the project.
Crown Prince hosts a mineral resource of 240,000 ounces at 4.1 grams per tonne of gold and is located on a granted mining lease with a Native Title Agreement in place.
The news of Westgold’s deal with Ora follows the announcement that Ramelius Resources has been eyeing off Westgold for some time.
Ramelius has submitted an application to the Australian Government Takeovers Panel, but no sitting panel has been appointed and no decision has been made to conduct proceedings has currently been made.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
.jpg){kind=small}
.png){kind=small}
