Labyrinth Resources Limited ASX: LRL) has signed a binding option agreement with Sand Queen Gold Mines Pty Ltd to acquire Sand Queen’s 49% interest in Comet Vale for A$3M in cash (within 12 months) and a binding share sale agreement to acquire 100% of Distilled Analytics Pty Ltd, which owns the Vivien Gold Project located 6km from the Agnew Gold Mine.
The transactions are consistent with the company’s strategy to consolidate and grow underexplored high grade gold mines across the Menzies, Leonora, and Leinster corridor that are close to infrastructure. The exercise of the Comet Vale option will allow the company to increase its existing controlling interest in Comet Vale from 51% to 100%.
The company’s Comet Vale gold project (on granted mining leases) is located 32km south of Menzies next to the Goldfields highway. The company released an updated Mineral Resource of 96Koz at 4.8g/t Au (100% basis) on 11 April 2023.
Vivien, previously owned and operated by Ramelius Resources Limited (ASX: RMS), will provide Labyrinth a near-term opportunity to define a JORC mineral resource across the Vivien Main Pit and Vivien Gem Prospect from the existing project drill database.
The Vendors of Distilled amongst others include Alex Hewlett and Kelvin Flynn. Alex and Kelvin have a strong track record, with one or both being involved in driving value creation at Red Dirt Metals Limited (now Delta Lithium), Spectrum Metals Limited, Mineral Resources Limited, Silver Lake Resources Limited, and Wildcat Resources Limited.
Following completion of the transactions and equity raising at full participation, Mr Hewlett and Mr Flynn are expected to emerge with voting power in Labyrinth of approximately 12.3% and 10.2% respectively. Firm commitments received via a two tranche placement to raise A$2.0M in support of the Transactions and to fund high priority work programmes.
To read more about this, please visit www.labyrinthresources.com
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