Iceni Gold Limited (ASX:ICL) Enters $44 Million Farm-In Deal
Iceni Gold Limited (ASX: ICL) has secured a binding Farm-In Agreement with Gold Road Resources Limited (ASX: GOR) valued up to A$44 million. This partnership targets the Guyer Gold Trend within Iceni’s 14 Mile Well Gold Project in Western Australia.
Farm-In Agreement Details
The deal entails a A$35 million exploration commitment over 154 km² of Iceni’s tenements, initiating with a minimum expenditure of A$5 million. Gold Road can acquire a 50% interest by investing an additional A$10 million within two years. An option allows Gold Road to increase its stake to 70% post a Pre-Feasibility Study (PFS), which Iceni will oversee initially.
Share Placement and Financial Strength
In conjunction with the Farm-In Agreement, Gold Road will take a 9.9% stake in Iceni by investing A$3.05 million at a premium share price of A$0.10. Should Gold Road exercise all options, Iceni expects to secure A$8.7 million in cash, strengthening its financial position for ongoing exploration and development efforts.
Comments
Wade Johnson, Managing Director of Iceni Gold, expressed enthusiasm about the partnership with Gold Road, emphasizing the project’s potential to yield significant gold deposits. He stated, “The Farm-in Agreement and share placement with Gold Road is an excellent result for Iceni Gold and its shareholders that provides the opportunity to accelerate and advance exploration along the exciting Guyer Gold Trend.”
Future Exploration Plans
Exploration activities under the Farm-In are slated to commence in January 2025, aimed at realizing the prospective value of the Guyer Trend. Iceni retains full ownership of its remaining tenements, which allows for accelerated exploration across high-priority targets.
Chairman’s Remarks
Brian Rodan, Executive Chairman, thanked shareholders for their support and noted that the alliance with Gold Road positions Iceni strategically in the gold discovery landscape. He expressed confidence in the continued success and potential discoveries from the partnership, emphasizing the importance of Gold Road’s investment.
This collaboration is anticipated to enhance the scope and pace of exploration activities at Iceni’s flagship project, reinforcing its commitment to shareholder value and project advancement.
Motley Fool contributor Kiarra Jackson 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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