Recharge Metals Ltd. has agreed to acquire the Sunset Well gold project in Western Australia’s Leonora gold district and raised AU$3.75 million to fund drilling at Sunset Well.
The acquisition provides Recharge with a multi-layered exploration platform in the heart of the Leonora gold district, combining an existing JORC 2012 inferred mineral resource with extensive brownfields and greenfields exploration potential across a highly underexplored structural corridor.
Recharge acquired 100 per cent of Berma Prospecting and Glen Huntly Gold from the shareholders of each entity. Recharge will issue 260 million shares equal to AU$2.6 million at 1 cent per share to the shareholders of Berma Prospecting and Glen Huntly.
The Sunset Well project comprises 10 granted prospecting licences, 15 prospecting licence applications, and four exploration licence applications, for a total of 181 square kilometres.
Included in the Sunset Well project is the Prospero Deposit, which hosts a shallow inferred mineral resource of 2.87 million tonnes at 1 gram per tonne gold for 94,500 ounces of gold.
Sunset Well also includes the Flanders Shear Zone, which has returned multiple historical gold intercepts and additional greenfields upside potential.
Recharge Managing Director Felicity Repacholi says that the acquisition of Sunset Well provides the company’s investors with immediate exposure to the strong gold environment.
“Located in the heart of the Leonora gold district, Sunset Well represents an advanced exploration asset anchored by the Prospero Deposit,” Repacholi said.
“The project hosts a near-surface, 94,500 ounce gold resource, which remains open at depth and along strike and has not been drilled since the 1990s.
“The broader tenement package presents compelling brownfields and greenfields potential, with multiple high-grade historical drill results yet to be followed up.”
Recharge plans to rapidly advance exploration at Sunset Well through immediate field reconnaissance and validation of historical drilling and targets.
To fund the exploration program at Sunset Well, Recharge raised AU$3.75 million through the issue of 375.2 million shares at 1 cent per share.
In addition, Recharge is allowing eligible shareholders to participate in a 200 million rights issue to raise up to AU$20 million. The rights issue will open on March 3 and close on March 27.
As part of the strategic growth of the company and the acquisition of Sunset Well, the company will strengthen its board and executive team with the addition of Directors Samuel Ekins and Ben Jones and Technical Advisor Brett Keilor.
