De Grey Mining (ASX: DEG) has entered an option agreement to acquire 80% stake in an additional six tenements near its existing landholding in Western Australia’s Pilbara.
The new tenements are believed prospective for high-grade gold in the basement rocks and are situated between De Grey Mining and Novo Resources’ existing exploration licences.
Upon signing the agreement, De Grey Mining paid the undisclosed vendor $30,000 in cash and 150,000 De Grey shares. Other agreement details include De Grey Mining solely funding exploration during the four-year option period. Then, if De Grey Mining elects, it can acquire the 80% after paying $500,000 in cash. However, the vendor retains alluvial and prospecting rights to a 3m depth.
According to De Grey Mining, the vendor reported many gold nugget discoveries within one of the tenements.
“Grade is king – we have put our foot in this area as any high-grade discovery within trucking distance of the proposed plant has the ability to substantially add value to our existing 1.2 million ounces and development plans,” De Grey Mining operations manager Andy Beckwith said.
Only yesterday, Small Caps published an article on news mid-tier gold miner Kirkland Lake Gold had agreed to purchase up to $5 million-worth of De Grey Mining stock.
As the company cements its Pilbara position, the numerous announcements have seen investors flocking to De Grey Mining, with the company’s stock sky-rocketing more than 280% in less than two weeks.
Pilbara gold rush
As Small Caps previously reported, Western Australia’s Pilbara has been the sight of a modern gold rush in recent months, with most players in the region enjoying unprecedented highs to their respective stock prices.
De Grey Mining’s Pilbara landholding is in proximity to projects owned by Novo Resources (TSX: NVO), Artemis Resources (ASX: ARV), Venturex Resources (ASX: VXR), Kairos Minerals (ASX: KAI), Calidus Resources (ASX: CAI), Haoma Mining (ASX: HAO) and Chalice Gold Mines (ASX: CHN).