THE BOURSE WHISPERER: ERO Mining (ASX: ERO) has struck an agreement with Ramelius Resources (ASX: RMS) to acquire the Spargoville gold project via an all scrip transaction.
The Spargoville gold project is located in the Yilgarn Craton in Western Australia, and includes the previously mined, Wattle Dam deposit and over 11,440 hectares of surrounding tenements.
Spargoville project location and access. Source: Company announcement
Ramelius operated the Wattle Dam gold mine between 2006 and 2012, producing 880,000 tonnes at 10.1 grams per tonne gold for approximately 286,000 ounces.
ERO said it considers potential exists for extensions and repetitions to known mineralisation for the project, which offer attractive targets for further exploration.
“We are pleased to be in a position to acquire the highly-prospective Spargoville gold project, which contains a large tenement package with huge exploration potential,” ERO Mining managing director Joe Houldsworth said in the company’s annunceemnt to the Australian Securities Exchange.
“The project represents an exciting opportunity to potentially discover significant gold deposits similar to Wattle Dam.
“This acquisition also provides a solid platform for the company to deliver on its plans for an exciting new phase of growth.”
The Spargoville project consists of 27 granted Mining Leases, two granted Exploration licences, five Prospecting Licenses and two Miscellaneous Licences, which include 100 per cent gold rights and various nickel rights.
The project is located approximately 60 kilometres southeast of Coolgardie and 25km southwest of Kambalda within the Coolgardie mineral field.
ERO also indicated, as part of the acquisition, it has entered into an in principle agreement with Ramelius for a strategic alliance, under which Ramelius may assist ERO with the commercialisation of gold discoveries at Spargoville as well as other ERO gold projects.