Gold Road Acquires Tenements in Western Australia
Apart from the initial payment of $50,000, the company has also agreed to pay a further $1 million in case 500,000 ounces of JORC compliant resource has been defined across any of the tenements.
Gold Road Resources Limited (ASX: GOR) announced to the market that it has purchased the Mt. Gill Project and the Kurrajong Project in Western Australia from Breaker Resources NL (ASX: BRB) for a total consideration of $50,000 in cash.
The Mt. Gill Project comprises of two tenements and covers an area of 167 kilometre square. The Kurrajong Project, which covers an area of approximately 54 kilometre square, has been acquired by Gold Road and its South Yamarna joint venture partner Sumitomo. Apart from the initial payment of $50,000, the company has also agreed to pay a further $1 million in case 500,000 ounces of JORC compliant resource has been defined across any of the tenements.
Yamarna Lease Granted
Gold Road has recently announced that it has successfully signed the native title agreement for the Gruyere, Central Bore and Attila Projects. The leases cover all three JORC 2012-compliant gold resources, discovered in the Yamarna belt. These leases also include the 6.2-million-ounce Gruyere deposit, which is currently undergoing a Feasibility Test and is forecasted to be developed as the company’s first gold mine.
Gold Road Executive Chairman, Mr. Ian Murray commented on the leases: “Securing the mining leases represents a further achievement in the ongoing de-risking of the Gruyere Project and we would like to thank the state government, the Yilka People and CNAC for their support in reaching this significant milestone. The company looks forward to bringing the Gruyere Project into production and delivering the associated benefits to all stakeholders.”
Having completed the $74 million share placement and entitlement offer, Gold Road states that it is sufficiently funded to complete the Feasibility Study and other initial activities for the Gruyere Project.
GOR has been trading in an uptrend since 2013 and has surged 50% since the beginning of the year. The stock has risen 0.4% since today’s announcement, and was last traded at $0.57 (as at 11:20 am (AEST)).
Author: Kaivalya Kandarpa
May 31, 2016
Kaivalya is an equity analyst and a client advisor at Wise-owl. She specialises in fundamental and technical analysis for large and mid-cap companies. Having completed her bachelor's degree in Business Administration majoring in Finance, Kaivalya has a comprehensive understanding of international stock market movements. She tracks local and overseas markets and compiles analytical reports for various industries.