CGN Resources has agreed to acquire the Desdemona project, consolidating its landholding in the prolific Leonora gold province in Western Australia.
CGN agreed to a binding agreement with Patronus Resources Ltd. to acquire 100 per cent of the Desdemona project, which adjoins CGN’s Leonora gold project.
The acquisition includes three mining licences, eight exploration licences and nine prospecting licences for a total of 142 square kilometres.
Under the terms of the deal, CGN will pay Patronus five million ordinary shares, or a 4.3 per cent shareholding, valued at approximately AU$500,000 on current pricing.
CGN will also make AU$750,000 in cash payments upon reaching certain milestones.
CGN Managing Director Stan Wholley said: “This acquisition represents a genuine step-change for our Leonora growth strategy, delivering a major, district-scale landholding in the heart of one of Australia’s most productive gold districts.
“CGN already held a highly prospective footprint, but the addition of the Patronus project elevates us to a new level, positioning the company among the largest landholders in the Leonora district.”
CGN said the consolidated landholding forms a strategic and district-scale position in one of Australia’s most prolifically endowed gold terranes.
The project also offers significant exploration potential, as much of the project area has not been systematically explored since the early 2000s.
Widespread transported cover has also constrained past work, leaving significant parts of the tenure under-explored, even though historic drilling contains numerous gold intercepts that demonstrate strong gold endowment.
“The consolidated package captures some of the most sought-after geological settings known to host significant deposits.
“It offers everything required for project growth: the right gold-bearing stratigraphy, outstanding access, multiple nearby processing options and a proven history of gold endowment, supported by numerous walk-up drill targets,” Wholley said.
Once the acquisition is fully executed, CGN plans to implement a detailed review and target studies within the new tenure.
The company will also commence heritage surveys and initial field reconnaissance and start drill planning and permitting.
