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Gateway to expand Gidgee gold project footprint, acquire 6 other projects

Gateway Mining Ltd. is expanding its landholding at the Gidgee gold project to 300 square kilometers with the acquisition of adjacent tenements in Western Australia.

The company executed a binding heads of agreement to acquire Omni Projects Pty. Ltd., which holds about 1,339 square kilometers of exploration licenses and applications.

In addition to expanding its Gidgee project, Gateway will acquire six other gold and base metal projects in Western Australia.

The company will issue A$1.5 million worth of shares to Omni GeoX Pty. Ltd. at 1.2 Australian cents apiece.

Gateway is also required to raise A$3.5 million via a rights issue at the same share price to be used for exploration, loan repayments, and working capital needs.

The acquisition is scheduled to be completed on Feb. 21, 2018, and the company will appoint Peter Langworthy as a director on completion.

Previously during the month, Gateway's planned acquisition of Queensland Coal Investment Holdings Ltd. and its Wilton and Fairhill coal projects fell through.