Raiden Resources (ASX: RDN) is the latest junior to jump into the Western Australian gold space after revealing it has agreed to acquire a portfolio of assets in the Pilbara, including the Arrow project which is adjacent to De Grey Mining’s (ASX: DEG) Hemi gold discovery.
The company has agreed to acquire Pilbara Gold Corp, which has a majority interest in an 823 square kilometre portfolio of assets, which are also believed prospective for nickel, copper, and platinum group elements.
Once due diligence has been completed, if Raiden elects to proceed with the acquisition, it will issue Pilbara Gold Corp vendors 207.78 million shares.
Additionally, Raiden will assume obligations and rights of Pilbara Gold Corp under an agreed joint venture with TSXV-listed Pacton Gold Inc.
In consideration for the 75% stake in the portfolio tenements, Raiden will make a C$500,000 cash payment and issue 129.8 million shares to Pacton. An additional, C$500,000 will be paid on the first anniversary on completion of the transaction.
As part of the deal, Raiden will raise $3 million after receiving binding commitments from Pacton to participate in a placement at $0.013 per share.
Commenting on the acquisition, Raiden managing director Dusko Ljubojevic said the portfolio could “rapidly transform” the company.
“The acquisition presents the company with multiple tier one exploration opportunities within well mineralised districts.”
Mr Ljubojevic noted a “significant” body of work has been completed across the portfolio and firmed up numerous priority targets.
“The proposed acquisition sets up the company as a strategic landowner within the district and expands on the company’s existing portfolio of their one exploration projects.”
Pilbara Gold portfolio
The project acquisition includes the Arrow gold project which is next to De Grey’s Mallina project which hosts the Hemi discovery.
Hemi remains open along strike and at depth and has four main deposit areas: Aquila, Brolga, Crow and Falcon.
Mallina has an existing 2.2Moz resource that doesn’t include Hemi where drilling has unearthed a multitude of results like these found at Aquila in February this year: 44m at 5.1g/t gold from 40m, including 13m at 8.8g/t gold; and 46m at 6.6g/t gold from 92m, including 21m at 8.3g/t gold.
Another asset includes the Boodalyerrie gold project where historic channel sampling returned up to 3m at 88.6 grams per tonne gold.
Across Boodalyerrie extensive gold bearing vein systems have been identified.
Meanwhile, the Yandicoogina gold project hosts 4.7km of strike, which has been delineated by historic workings and geochemistry.
Rock chip sampling has previously been undertaken across the project and unearthed up to 199.7g/t gold.
Another project in the portfolio is Mt Sholl, which is believed prospective for nickel, copper, PGE and gold.
This asset is 8km from Artemis Resources’ (ASX: ARV) Radio Hill nickel-copper project and processing infrastructure.
Raiden claims this project has multiple “significant” drill intercepts with $6 million previously spent across the project.
Results include 13m at 1.18% nickel and 1.02% copper from 72.2m; 17m at 0.62% nickel, 0.95% copper and 0.98g/t palladium from 63m; and 6m at 3.56g/t gold.
“We look forward to providing further market updates as we progress with the due diligence across the portfolio over the coming weeks, as well as providing further news flow from our recent drilling program at Kalabak in Bulgaria,” Mr Ljubojevic said.