Highlights
Iceni Gold Managing Director, Wade Johnson, said:
“We are very pleased to be partnering with Gold Road, a company that needs no introduction to gold exploration, discovery and mining in Western Australia. The Farm-in Agreement and share placement with Gold Road is an excellent result for Iceni Gold and its shareholders that provides the opportunity to accelerate and advance exploration along the exciting Guyer Gold Trend at our 14 Mile Well Gold Project.
“The commitment by Gold Road reaffirms our belief that the Guyer Gold Trend has potential to host a significant gold deposit and reinforces the prospectivity of the entire tenement package. The planned significant investment by GOR at Guyer will now also allow for the concurrent evaluation of multiple high prospectivity targets to be accelerated on the remainder of the Iceni ground in which we retain 100% ownership. The farm in agreement will see Gold Road potentially spending up to A$35 million to earn up to an 80% interest in the Farm-in tenements that include the Guyer trend.
“The largely unexplored 11.5km long granite-greenstone contact hosting the Guyer trend, hidden beneath transported cover, combined with recent success from aircore drilling and the proximity of the nearby gold nugget field has provided us with the initial indications of a corridor that has the potential to deliver a new large gold discovery. The Iceni and Gold Road teams are very keen to get underway with the next phase of exploration that is expected to commence in January.”
Overview
Iceni Gold Limited (ASX: ICL) (Iceni or the Company) is pleased to announce it has entered into a $35 million farm- in agreement (Farm-in) with Gold Road Resources Limited (ASX:GOR) (Gold Road or GOR) in respect of 154km² of tenements (Farm-In Area), that form part of the Company’s 100%-owned 14 Mile Well Gold Project between Leonora and Laverton in Western Australia (Figure 5).
The Farm-in Area, which is to be called the Guyer Project, is shown in Figure 1. In addition, Iceni has entered into a subscription agreement with GOR pursuant to which GOR will immediately acquire a 9.9% shareholding in Iceni through a placement of new shares at 10 cents per share to raise A$3.05 million (Placement).Together, the Farm – in and Placement will strengthen the Company’s finances to accelerate exploration on its 100% non-JV tenements covering 733km2 whilst partnering with Gold Road to advance exploration at its flagship Guyer Gold Trend (Figures 2 & 3).
Details
Subscription Agreement
The Company has entered into a subscription agreement (Subscription Agreement) with Renaissance Resources Pty Limited (Subscriber), a wholly owned subsidiary of GOR. Under the Subscription Agreement, the Subscriber has subscribed for the following securities:
Funds raised under the Subscription Agreement will be used to on the exploration of existing projects and for working capital purposes.
Farm-in Agreement
The Company’s wholly owned subsidiary, Guyer Well Pty Ltd (Owner) has entered into a Farm-in agreement (Farm- in Agreement) with Gold Alpha Pty Ltd (Acquirer), a wholly owned subsidiary of GOR. The Farm-in Agreement will commence immediately upon signing. The Acquirer must expend a minimum of $5 million (Minimum Obligation) as soon as reasonably practicable.
Under the Farm-in Agreement, GOR may earn and acquire up to an 80% joint venture interest in the Company’s tenements which form the Guyer Project (see Figure 1) as follows:
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