Acquires High-Grade Silver Project In WA
London-listed precious metals Wishbone Gold Plc (AIM:WSBN) has signed an exclusive deal to acquire 100% ownership of the 92.19 square kilometres Cottesloe Project in the Patersons Range region of Western Australia.
Chairman, Richard Poulden, said the proposed acquisition will more than double Wishbone’s exposure in the well-endowed gold province of the Patersons, increasing Wishbone’s tenement holding to 159 sq. km from 67 sq. km.
“With silver becoming increasingly in demand with the climate change agenda initiatives, the silver potential is exceptional here at Cottesloe,” Mr Poulden said.
“This project is a very exciting new acquisition for Wishbone. The acquisition of this project more than doubles our tenement size in the exciting Patersons Range region of Western Australia.
“We see the potential for Cottesloe to host both precious metals and base metals as very high, based on historic data available through the Western Australian Government archives.
“The company is well placed to move quickly on the due diligence process on Cottesloe, having recently completed the acquisition of our three other tenements in the same area. Technical and legal due diligence is underway and further updates will be advised as soon as they become available.”
The Cottesloe Project is located around 55 km south of Newcrest Mining’s Telfer Gold Mine and about 35 km south east of Wishbone’s Red Setter Project in the Patersons Range. Cottesloe consists of one granted exploration license E45/4543 and is considered highly prospective for precious and base metals.
Wishbone has signed an exclusive option to acquire the Patersons Range Project and has agreed to issue Alta Zinc Limited 600,000 new ordinary Wishbone shares, at a deemed issue price of 14 pence per share equating to £84,000, in consideration for the option.
The Option Term means the period until the approval of the extension of term of E45/4543 which is due for renewal by 30 June 2021.
Assuming that Wishbone proceeds to acquire the projects, Wishbone will pay the vendors a cash payment of £35,000 to Mining Equities Pty Ltd and issue Mining Equities Pty Ltd 600,000 new ordinary Wishbone shares and David Lenigas.