Metal Bank Acquires Hastings Technology Metals’ WA Gold Assets for $2.3 Million

Gold-focused junior Metal Bank (ASX: MBK) will acquire the Western Australian exploration assets of Hastings Technology Metals (ASX: HAS) for $2.3 million consideration by way of a share placement.

The deal will include the Whiteheads project in the eastern goldfields (held through Hasting’s subsidiary Great Western Gold), the Ark project in the Gascoyne region (held through subsidiary Ark Gold), and the Darcy project in the east Kimberley.

The divestment will allow Hastings to focus on the development and operation of its core Yangibana rare earths and Brockman niobium and heavy rare earths projects in a manner that gives shareholders an ongoing exposure to gold.

Share Consideration

Metal Bank will issue Hastings with 160 million new shares at a 10-day volume weighted average price of $0.014 per share that Hastings will distribute to shareholders via a return of capital.

Metal Bank will also pay a deferred consideration of $800,000 to the Whiteheads vendor over the next five years, subject to reaching of defined resource milestones.

On completion of the transaction, Hastings chief operating officer Tim Gilbert will be appointed chief executive officer of Metal Bank, while executive chair Charles Lew will also join the Metal Bank board as a non-executive director.

Mr Gilbert is a mining engineer with over 40 years’ experience in senior strategic, operational and construction roles across multiple commodities, including as vice president of Gold Fields Australia and general manager of the company’s Agnew mine.

Advances WA Gold Strategy

The Hastings acquisition advances Metal Bank’s WA gold strategy, spearheaded by the Kingsley, Winja and Homestead deposits within its advanced Livingstone project near Meekatharra.

Kingsley has an inferred resource estimate of 1.68 million tonnes at 1.35 grams per tonne gold for 73,000 ounces, while Winja has an inferred 125,000t at 1.53g/t gold for 6200oz.

The Homestead deposit contains a total resource of 1Mt at 1.35g/t gold for 43,400oz, comprising 83% indicated (821,000 tonnes at 1.37g/t gold for 36,200oz) and 17% inferred (183,000t at 1.22g/t gold for 7200oz).

Livingstone also hosts an exploration target at Kingsley East of between 290,000t and 400,000t grading up to 2g/t gold for between 16,8000oz and 25,700oz, plus numerous other high-grade drill intersections including results of up to 4m at 6.26g/t gold at the Livingstone North prospect.

World-Class Minerals Province

The Whiteheads project is located 80 kilometres north of Kalgoorlie in a world-class minerals province with access via sealed and well-maintained unsealed roads.

The project’s tenement package, which covers 380 sq km, includes 13 exploration licences, one prospecting licence, and one mining lease, plus walk-up drill targets, multiple prospects, and untested surface gold anomalies.

Ark consists of two exploration licences across 90 sq km south-east of Yangibana, while Darcy has three exploration licences over 100 sq km nearby to Brockman.

Metal Bank said Whiteheads’ location offered potential access to nearby third-party processing capacity, which could provide future pathways for toll treatment options.

Hastings will commence a drilling campaign in the coming weeks aimed at fast-tracking Whiteheads’ Seven Leaders deposit into production, while Metal Bank conducts its due diligence on the acquisition.