Sipa Resources Limited (ASX:SRI) Acquires New Gold Projects
Sipa Resources Limited (ASX:SRI) has signed binding agreements to acquire a 100% interest in four advanced gold exploration projects located in South Australia and Western Australia. This strategic acquisition is poised to significantly enhance Sipa’s exploration activities and ultimately build shareholder value.
Acquisition Details
The acquired projects include Tunkillia North, Nuckulla Hill, and Skye Projects in South Australia, covering approximately 729 square kilometres, along with the Crown Project in Western Australia, which spans 30 square kilometres. All projects are in proximity to million-ounce gold deposits and existing mining infrastructure, including the 1.5 million-ounce Tunkillia gold deposit and the Challenger gold mill.
The purchase will be funded by an upfront cash payment of $200,000, issuance of $750,000 in shares, and additional deferred consideration totaling $1 million. A performance milestone includes a payment of $750,000 contingent upon reporting a JORC compliant inferred resource of 100,000 gold ounces.
Future Plans and Exploration Activities
Post-acquisition, Sipa plans to ramp up its exploration efforts across these projects, focusing on drilling highly prospective areas. In particular, projects such as Nuckulla Hill have shown promising historical results with multiple gold intercepts and significant geological potential.
Managing Director Andrew Muir stated, “The acquisition of these new projects enables Sipa to significantly ramp up our exploration efforts and diversify our portfolio, taking advantage of year-round on-ground activity.” The company anticipates balanced exploration between the new and existing projects to maintain a consistent stream of updates for investors.
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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