De Grey in $15m gold project deal

Metals explorer De Grey Mining has entered into an option agreement to acquire private company Northwest Nonferrous Mining Australia’s Indee gold project near Port Hedland for $15 million.

De Grey told the market today it had secured a 12-month option to evaluate and explore the Indee project, which is located just west of the company’s Turner River assets.

It also has the option to acquire Northwest’s subsidiary, which wholly owns the Indee project, including all associated infrastructure, for $15 million.

“This acquisition not only consolidates ownership of the regionally significant and highly prospective Mallina shear zone, but dovetails very well with our Turner River project and fast tracks De Grey into development studies,” De Grey chairman Simon Lill said.

“The potential scale of operation will place us within reach of a small and select group of ASX-listed gold developers.”

The Indee project covers a 414 square kilometre area, with a measured resource of 31,000 ounces of gold and an indicated 236,000oz.

De Grey shares were 5.8 per cent higher to 5.4 cents each at the close of trade.