LionOre Mining International has increased a strategic stake in Breakaway Resources and purchased the Bannockburn gold project.
In a separate transaction, LionOre has subscribed for a series of convertible notes with total face value of $3.5 million with exercise price of 4.5 cents per share.
However, this transaction is still subject to shareholder and regulatory approval.
For $500,000 in cash LionOre has also bought the rights to the Bannockburn gold project, 67km north-west of Leonora.
Drilling done by Breakaway has estimated the project to contain 489,000 ounces of gold.
The sale of the project, at the advanced exploration stage, also releases $1.5 million in cash to Breakaway through security deposits held by third parties relating to environmental performance. As a result, Breakaway now has cash reserves of $4.5 million. The acquisition by the Canadian nickel giant follows the recent ascension of LionOre Australia managing director Mark Ashley to the board of directors of the parent company.
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