Pioneer to acquire gold rights in the Acra project from Xstrata

THE BOURE WHISPERER: Pioneer Resources (ASX: PIO) has reached an agreement with Xstrata Nickel Australasia Operations (XNAO) to acquire 100 per cent of the gold interests in, what was formerly, the Acra Joint Venture project.

The tenements concerned coaver 103 square kilometres and are located east of Kalgoorlie in Western Australia, close to projects held in Pioneer’s current project portfolio, which includes the Juglah Dome project and the recently acquired Golden ridge project.

 

Pioneer tenements showing Acra transaction tenements. Source: Company announcement

 

Once the agreement has been finalised Pioneer will hold a 100 per cent interest in the gold mineralisation at Acra.

XNAO will hold 100 per cent of the nickel sulphide mineralisation, while its JV partner Heron Resources (ASX: HRR) will retain its 100 per cent interest in the nickel laterite mineralisation.

The deal will entail Pioneer assigning its 20 per cent interest in nickel sulphide mineralisation to XNAO, which in return will assign Pioneer its 80 per cent interest in all commodities, excluding nickel and provide Pioneer with registerable transfers for its 80 per cent interest in the Acra tenements.

Under the terms of the agreement both Pioneer and XNAO have agrred to exchange reciprocal royalties equal to 0.5 per cent of the net smelter return (NSR) for gold and nickel (excluding laterite).