Phoenix Gold has announced it will acquire Carrick Gold’s West Kalgoorlie gold tenements in a cash and scrip deal worth just over $700,000.
Phoenix said today it would buy the West Kalgoorlie project for a cash payment of $350,000 and 1.62 million shares, at a deemed price of 22 cents.
The tenements adjoin Phoenix’ Broads Dam Kunanalling and Ora Banda-Grant’s patch projects, covering 85 square kilometres of land considered highly prospective for gold.
“The continued consolidation of this region is fundamental to our strategy of developing a significant mid-tier gold developer and producer in the medium term,” Phoenix managing director Jon Price said.
“We look forward to commencing a detailed review on the existing data on the leases while continuing to expand our 1.68 million ounce resource base.
“We are currently undertaking feasibility work on our project pipeline and will seek to continue generating early cash flow from our existing stockpiles and non-core mining projects.”
At close of trade today, Phoenix stocks had risen 4.8 per cent, trading at 21.5 cents.
