RNI picks up Fortnum gold project

THE BOURSE WHISPERER: Resource and Investment (RNI) has greeted the New Year by announcing following a deal to acquire the Fortnum gold project and surrounding exploration tenements in the Bryah Basin of Western Australia.

The Fortnum project, owned by BlueCrest subsidiary Grosvenor Gold, is located 170 kilometres north-west of Meekatharra in WA.

RNI has entered into a Sale & Purchase Agreement with BlueCrest Mercantile Master Fund Limited.

Under the terms of the agreement RNI will acquire all the issued capital of Grosvenor Gold for a total consideration of $35 million payable as $20 million in cash and $15 million of fully paid ordinary shares in RNI.

RNI said the deal sets it up to become a gold producer, with significant exploration upside.

“Fortnum hosts a JORC-compliant resource of 1.2 million ounces at a grade of 2.2 grams per tonne and has more than 100 walk-up drilling targets based on an extensive exploration database compiled by previous owners, offering outstanding exploration potential for both lode gold and VMS copper-gold deposits,” Resource and Investment said in its ASX announcement.

The acquisition also entails the one million tonne per annum Fortnum processing plant, which RNI said it plans to bring back into production within 12 to 18 months.

The acquisition will increase RNI’s footprint in the Bryah-Padbury Basin from its current standing of 434 square kilometres to 2,225 square kilometres.

“This will make RNI a dominant tenement holder in the region with control of a 100km strike length of the highly prospective Narracoota Volcanics, host to the world-class DeGrussa copper-gold deposit currently being developed by Sandfire Resources,” the company said.