Albion Resources Limited (ASX:ALB) Acquires Yandal West Gold Project
Acquisition Announcement
Albion Resources Limited (ASX:ALB) has entered into a binding purchase agreement to acquire the Yandal West Gold Project from Great Western Exploration Limited (ASX:GTE). The project, situated in the highly prospective Yandal Greenstone Belt, offers several identified high-grade gold targets, with an initial focus on the Barwidgee Fault, Ives Find, and May Queen targets.
Key Project Details
The Yandal West Gold Project is strategically located near prominent gold facilities, including the Bronzewing and Jundee gold mines. Initial drilling in 2023 revealed significant results, such as 4m at 9.0g/t Au and 7m at 1.02g/t Au from previous exploration. Additionally, the project benefits from completed heritage clearance, enabling immediate exploration commencement upon acquisition approval.
Strategic Comments
Albion’s Non-Executive Chairman, Steven Formica, expressed optimism regarding the acquisition. “The Yandal West Project is poised for significant exploration, with several shallow high-grade gold targets ready for immediate drilling. Our team is excited to advance this opportunity for our shareholders,” said Formica. He also noted that Great Western Exploration will become a substantial holder in Albion following completion of the acquisition.
Acquisition Terms
Albion plans to complete the acquisition by issuing fully paid ordinary shares and performance rights, contingent upon shareholder approval. Noteworthy is the planned addition of mining executive Chris Tuckwell as a Non-Executive Director to bolster the company’s management team.
Future Outlook
In line with the acquisition, Albion Resources is also pursuing a capital raising initiative, and completion of the acquisition is anticipated by mid-January 2025. The company is set to embark on an aggressive exploration program that aims to generate substantial news flow for investors throughout 2025.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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