Shree Minerals Ltd. said March 7 that it will exercise its option to acquire the Golden Chimney gold project in Western Australia from DJ Carmichael Group Pty. Ltd. unit Carmichael Prospecting Co. Pty. Ltd.

Shree, which made the move after the project's lease application was granted in February, will issue 9 million shares as consideration for Golden Chimney, where the company has commenced preparations for exploration.

The option deal is part of an agreement struck in October 2018 where Shree aimed to raise A$1.4 million through a 1-for-1 non-renounceable rights issue at 0.5 cents per share that was fully underwritten by DJ Carmichael.

Shree paid a non-refundable deposit of A$10,000 for an option on Golden Chimney and the Karramindie gold project, also owned by Carmichael Prospecting. Shree committed to issue up to 13 million shares upon exercising the option.

The development comes after Shree revealed plans to restart its Nelson Bay River iron ore project in Tasmania due to a recent surge in prices.