Ora Gold Limited has acquired Sipa’s Murchison Project — located adjacent to and south of the company’s Garden Gully Gold Project — tripling the size of the company’s existing 217 square kilometres ground position in the region along key geological structures.
The Murchison Project currently comprises of 14 exploration licences and three applications for exploration licences which encompass 460 square kilometres in the Murchison region of Western Australia.
This acquisition includes well-located and highly prospective tenements near the Reedy Gold Mine and the Burnakura Gold Plant.
The Murchison Project also aligns with Ora Gold’s strategic focus on pursuing organic and inorganic growth options that are considered accretive for shareholders.
The total consideration for the acquisition payable to Sipa is $1.4 million, comprising $600,000 in cash and $800,000 in Ora Gold shares at a deemed price of 0.60 cents.
Half of the shares are subject to a voluntary 12-month escrow period.
Ora Gold CEO Alex Passmore stated: “We are pleased to announce the acquisition of very prospective additional tenure adjacent to our existing Garden Gully Project. The tenement package includes extensions to the Abernethy shear zone in the southern part of our existing project area which shows substantial gold anomalism along an over five kilometres strike.
“Additionally, the southern and southeastern newly acquired areas are in prospective zones and are located near recent past producing mines (Reedy and Burnakura). Exploration on the new tenure will be incorporated into a regional exploration program with drilling to be undertaken in the coming three month,” said Passmore.