Aldoro Resources chases advanced gold project with Altilium Metals acquisition
Once the acquisition has been completed, Aldoro Resources will focus on the Penny South gold project.
Aldoro Resources (ASX: ARN) is the latest junior explorer to chase gold, with the company revealing this morning it has entered a binding option agreement to acquire 100% of Altilium Metals, which owns advanced gold assets in Western Australia’s Murchison region.
Altilium’s portfolio includes the Penny South gold project which is contiguous to Spectrum Metals’ (ASX: SPX) Penny West project.
The company’s other assets include the Narndee project which is prospective for gold, nickel, copper and platinum group metals, the Unaly Hill South gold project and the Windimurra Igneous Complex where lithium bearing pegmatites where recently identified.
Combined, the projects cover 756 square kilometres and include five exploration licences and two applications in the Murchison region.
“We are extremely pleased to reach agreement of the acquisition of Altilium,” Aldoro chairman Jeremy King said.
“The addition of their exciting exploration assets, including the Penny South gold project, greatly enhances Aldoro’s existing portfolio and builds on our long-term strategy of creating a significant Western Australian exploration and development company.”
Acquisition terms
Aldoro will pay an initial $50,000 option fee to acquire the entire issued capital of Altilium.
If Aldoro proceeds with the acquisition, it will issue Altilium shareholders 10.8 million ordinary Aldoro shares at $0.15 each.
Additionally, Altilium’s managing director Caedmon Marriott and chairman Rhod Grivas will join Aldoro’s board.
“We look forward to welcoming Caedmon Marriott and Rhod Grivas to Aldoro’s board, the experience they will greatly assist Aldoro going forward,” Mr King said.
Advancing the combined entity
Mr Marriott said he was “very pleased” to combine the companies, with the duo’s immediate focus to be the Penny South and the underexplored Kiabye Greenstone Belt (part of the Narndee project) and Unaly Hill South tenements.
Historic drilling at Penny South intersected 2m at 33.98 grams per tonne gold, 6ma t 1.27g/t gold and 5m at 1.11g/t gold.
To fund exploration, Aldoro will carry out a placement to raise $650,000 before costs.