Strickland Metals has increased its Yandal Belt gold resource base to over 600,000 ounces, by acquiring the 346,000oz Millrose gold project.

Strickland (ASX:STK) announced the acquisition from Millrose Gold Mines and Golden Eagle Mining today – a move which transforms the company into a significant, emerging WA gold company.

By adding Millrose to its portfolio, Strickland has successfully consolidated the north-eastern flank of the Yandal Belt – home to a series of major gold deposits including Northern Star Resources’ +10Moz Jundee project, and the Bronzewing (4Moz) and Darlot (3.5Moz) projects but an area which remains significantly underexplored.

Millrose has an indicated and inferred mineral resource of 345,000oz, 264,000oz of which sit in the indicated category. It will join the Horse Well and the soon-to-be acquired Yandal East gold project on Strickland’s books, taking its overall regional resource holding to 603,000oz with significant further exploration potential.

Here’s a visual.

Strickland Metals’ regional landholding. Pic: Supplied.

It’s a great postcode to be in.

The build-up to 600,000oz has been swift for Strickland, which bought out Horse Well JV partner Silver Lake in May, before making the deal to buy Renegade Exploration’s Yandal project to the south of Horse Well earlier this month.

Strickland also appointed a new board helmed by chief executive officer Andrew Bray in April, and has also raised or received commitments to raise $13 million over the period since.

“It’s been a very busy three months for the new team at Strickland,” he said.

“In a short period of time, we have put together a new board and management team; bought out Silver Lake’s interest in the Horse Well Joint Venture; acquired the Yandal East project from Renegade Exploration Ltd; and injected $13 million of fresh capital into the company, with a further $4 million to come from the upcoming rights issue.

“The result of this effort is that the company has consolidated the entirety of the north-eastern flank of the Yandal Greenstone Belt and built up a huge footprint at a tier 1 address.

“Of particular excitement for the company is the fact that this part of the belt is significantly underexplored, despite its resource endowment elsewhere and its regional geology.

“We are currently gearing up for a major systematic drilling program across this highly prospective gold system, for which we are now very well funded. We are scheduled to commence drilling early in the September Quarter 2021.”

Major drilling programs are currently being planned, with full details expected to be released to the market shortly.

Terms of the deal

In exchange for the Millrose project, Strickland will pay $1 million on signing the binding term sheet, with a further $5 million to be paid within three months of the initial payment.

Another $4 million will be due within three months of that payment – a sum payable either in full cash or split as a half-cash, half-scrip payment where the value of shares is calculated on a 20-day volume-weighted average price.

The company has completed a recently announced share placement and will undertake a 1 for 7 entitlements issue of 105,036,077 shares at 4c each to raise a maximum $4.2 million.

This offer is fully underwritten by Enrizen Capital, and funds will be predominantly used for the transaction.




This article was developed in collaboration with Strickland Metals, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.