Precious metals mining company, Wishbone Gold (AIM:WSBN), added to the list of recent developments coming out of the Patersons Range region of Western Australia, by informing investors that it has signed an exclusive 45 day option to acquire 100% ownership of three exploration tenements.
The tenements make up 67 square kilometres combined, with the largest of the exploration licences, EL 45/5297 (57.4km sq), sitting just 13km southwest of Newcrest Mining’s (ASX:NCM) Telfer Gold Mine.
The second and third, smaller licences, EL’s 45/5408 (6.38km sq) and 45/5409 (3.19km sq), are located just 15km southeast of Telfer, and some 25km southwest of Newcrest and Greatland Gold’s (AIM:GGP) celebrated Havieron gold discovery.
Wishbone says it has agreed to pay vendors an option payment of £50,000, with the company already having commenced it due diligence.
Should it choose to acquire the projects, it will offer the three vendors an additional £183,333 in cash, issue 11,111,111 new ordinary shares at 3.30p, and 5,555,555 warrants to subscribe for one new ordinary share in the capital of the company.
Wishbone excited to take a slice of the Paterson pie
Speaking on the acquisition option, company Chairman, Richard Poulden, commented:
“The Paterson Ranges host some of the most exciting gold and copper mines and discoveries in the Western Australian Pilbara region made in recent years. The best acreage is tightly held and thus to secure a deal on these assets is a very significant development for Wishbone.”
“As previously advised, Wishbone already has advanced exploration assets in Australia and therefore has the necessary geological consultants in place to progress all exploration programmes. I look forward to updating the market over the coming weeks on the progress of this very significant transaction for the Company.”
Having started with a 19% rally, the Wishbone Gold share price has slightly relaxed, but still rallying by 15.94% or 0.55p, to 4.00p a share 05/10/20 11:45 GMT.
The Marketbeat community had a 57.92% ‘Underperform’ rating on the stock, prior to today’s update. Its current price is well above its year-to-date nadir of 1.13p a share, but slightly short of its recent high of 4.35p.