Aruma Resources Ltd. entered a binding agreement to purchase exploration leases from local prospectors, aiming to increase the landholding related to its Beowulf gold project in Western Australia.
The company said Oct. 4 that a geological evaluation of the area had identified existing eluvial gold mining.
"The project had no known gold occurrences, so we were highly encouraged to discover the prospector's results in the central area of the leases," Aruma Managing Director Peter Schwann said
Aruma subsequently agreed to terms for the purchase of four granted exploration leases covering 12 square kilometers within the Beowulf project area. As consideration, the company will make staged cash payments totaling A$60,000 and will issue 5 million shares.
The current owners, which will be allowed to continue prospecting until mining starts, will also retain a 5% net smelter royalty.