12/08/2020 - 11:00

Regis in $10m gold buy

12/08/2020 - 11:00

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Regis Resources has boosted its gold portfolio in Western Australia after securing tenements from fellow Perth-based explorer Stone Resources Australia.

Regis in $10m gold buy
The sale includes the 5.8 million-tonne Ben Hur deposit. Photo: Stone Resources Australia

Regis Resources has boosted its gold portfolio in Western Australia after securing tenements from fellow Perth-based explorer Stone Resources Australia.

The acquisition comprises nine mining tenements covering 50 square kilometres in the Duketon Greenstone Belt and includes the 5.8 million tonne Ben Hur deposit, which forms part of Stone Resources’ North Brightstar project located north of Laverton.

Regis said the acquisition had potential to add further life to its Duketon gold operations.

Immediate work on the new tenements would begin once the acquisition was completed, Regis said, and would include infill drilling to upgrade and extend the Ben Hur deposit, which had an existing 290,000-ounce mineral resource.

The most recent drilling program at Ben Hur took place in 2017, which Regis said would be included in any future updated mineral resource.

The Subiaco-based company also said exploration targets identified during its due diligence would be included in the broader exploration plans for its Duketon project.

Regis managing director Jim Beyer said it was a significant acquisition for the company.

“The exploration tenure acquired with the Ben Hur deposit has the potential for additional ounces to be discovered and added to our already substantial resource and reserve holdings,” he said.

“We are very excited by the potential for exploration success.”

Regis will issue $10 million worth of shares to Stone Resources, which will use majority of the funds to pay its major shareholder Stone HK $6 million for a proposed share buyback and debt cancellation.

Stone Resources will retain the remaining $4 million worth of Regis shares.

The Cloverdale-based company will also gain a 1 per cent net smelter royalty (NSR) on one of the mining leases sold to Regis, to be called the Ben Hur royalty.

It will be capped at $5 million before reverting to a 0.0025 per cent NSR for four years.

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