Iceni Gold partners with Gold Road Resources to advance Guyer Gold Trend tenements
Iceni Gold (ASX: ICL) has entered into a $35 million farm-in agreement and share placement transaction with Gold Road Resources (ASX: GOR) over 154 square kilometres of tenements known as the Guyer Gold Trend.
Guyer sits within Iceni’s 14 Mile Well gold project in Western Australia.
Iceni will retain 100% ownership of the remaining acreage at 14 Mile Well and plans to accelerate exploration on other high-priority targets.
Success milestones
Under the terms, Iceni subsidiary Guyer Well will manage a minimum $5m exploration expenditure from January with the opportunity for Gold Road subsidiary Gold Alpha to take management upon reaching key success milestones.
A further $10m will be spent on exploration over the next two years, with Gold Road needing to spend a minimum of $5m to earn a 50% joint venture interest in Guyer.
Gold Road can earn an additional 20% stake by free-carrying Iceni to the completion of a pre-feasibility study, after which it will be able to acquire a final 10% (for a total 80% equity) by paying $20m to Iceni.
Subscription and options
In addition to the farm-in, Gold Road subsidiary Renaissance Resources will acquire a 9.9% interest in Iceni by subscribing for $3.05m worth of Iceni shares at $0.10 each.
Gold Road will also receive 19.2 million options exercisable at $0.15 each on or before 31 December 2025, and another 13.8 million options exercisable at $0.20 on or before 31 December 2026.
Iceni stands to be paid a total of $8.7m from the placement and all exercised options.
Substantial deposit
Iceni managing director Wade Johnson said the company was pleased to be partnering with Gold Road.
“The farm-in and placement reaffirm our belief that the Guyer Gold Trend has the potential to host a significant gold deposit and reinforce the prospectivity of the entire tenement package,” he said.
“The planned investment by Gold Road at Guyer will allow for the concurrent evaluation of multiple priority targets to be accelerated at the remainder of 14 Mile Well.”
Potential discovery
The largely unexplored 11.5km granite-greenstone contact that hosts the Guyer trend sits beneath transported cover.
“Combined with recent success from aircore drilling and the proximity of the nearby gold nugget field, we have the initial indications of a corridor that has the potential to deliver a new large gold discovery,” Mr Johnson said.
“The Iceni and Gold Road teams are very keen to get underway with the next phase of exploration, which we expect to commence in the new year.”