Sipa Resources Limited (ASX:SRI) (FRA:SPO) has executed a sale and purchase agreement with Miramar Resources Ltd (ASX:M2R) to acquire the Garden Gully Project in the Murchison district of Western Australia for $150,000 in cash and shares.
The tenement package covers 207 square kilometres, overlying the Abbotts Greenstone Belt immediately along strike from Sipa’s existing 100%-owned and farm-in tenements to the south.
This acquisition will double the size of Sipa’s landholding in the Murchison district to a total of 467 square kilometres and gives the company a dominant position in the Abbotts Greenstone Belt.
Sipa managing director Pip Darvall said: “The acquisition of these three tenements provides an opportunity for Sipa to not only build on our land package in the highly prospective Murchison region, but provides a fantastic opportunity for larger scale exploration and drilling programs.
“We are currently broadening our upcoming programs to include the new ground and looking forward to drill testing priority targets as soon as all approvals are achieved.”
Terms of the acquisition
The agreement for the outright 100% purchase of the three tenements E51/1932, E51/1972 and E51/1973 from Miramar includes the following key terms:
- $50,000 cash;
- $100,000 in Sipa shares based on the 5-day VWAP prior to the date of this announcement;
- Sipa shares to be subject to a six-month escrow period; and
- Sale subject to Ministerial consent.
The tenement package covers the mineralised structures that trend north from Sipa’s existing ground and prospective geology where there has been limited drill testing of basement rocks.
Expand drilling plans
Sipa will now expedite the grant of the remaining tenements within the Murchison Region and expand its current drilling plans to include the new acquisition tenements.
Program of work approvals for drilling on the farm-In tenements have already been achieved and a heritage survey is scheduled for later this month.
The successful completion of the heritage survey will allow for on-site clearing to occur.
Drill contractors have been engaged to undertake an aircore drilling program.
The Murchison Project represents a high-potential opportunity for Sipa to explore for gold in a prolific district in the WA Goldfields, which contains excellent infrastructure, access and high levels of nearby activity, and the expanded ground position enhances this opportunity significantly.
"In line with strategy"
Miramar’s executive chairman Allan Kelly said the sale of the Garden Gully Project would enable the company to focus its resources on its other emerging projects, including the Gidji JV project in the Eastern Goldfields where recent drilling had returned significant results.
“This sale of the project is in line with our strategy of prioritising our resources towards projects that we believe provide the best opportunity to create shareholder value by making a potentially economic discovery,” he said.
"By taking shares as part of the sale process, we keep exposure to any upside should Sipa have exploration success at Garden Gully, or any of their other projects.”