MatsaResources Ltd. said July 21 that it struck a deal to acquire theLake Carey gold project in Western Australia for about A$1.8 million, excludinggoods and services tax.
The company has paid A$250,000 upon signing the deal, whichwill be refunded if any tenements are forfeited, while the remaining A$1.5million will be advanced upon settlement of the transaction, expected withinthis quarter.
Matsa will fund the acquisition with existing cash.
The project consists of 12 tenements and covers an area of102 square kilometers some 25 kilometer south of 's gold mine.
The Lake Carey gold project has existing mineral resourceslocated at Fortitude totaling 6.289 million tonnes grading 1.9 g/t of gold for385,300 contained ounces.
The project package includes the , Phantom Well andWilga projects, which include the Fortitude gold deposit.
Matsa plans to develop and mine the Fortitude deposit usinga third-party processing facility as quickly as possible to take advantage ofthe current high gold prices.
It has already started discussions and has receivedindicative offers from nearby processing facilitates.
The ASX-listed company would be able to fund all studies anddevelopment capital from existing cash and liquid reserves.
Company Chairman Paul Poli said the acquisition will notdistract Matsa from its commitment to existing explorationprojects in Australia and Thailand.