Peninsula Mines Ltd. said Dec. 12 that it agreed to acquire a package of gold-prospective exploration tenements in Western Australia, consisting of 20 prospecting licenses covering an area of approximately 76 square kilometers.
As a result of the deal, Peninsula Mines will shift its focus from graphite exploration to gold exploration.
Under the deal, the Australia-listed explorer will issue 769,230,769 shares and pay a total of A$100,000 in cash to acquire the issued share capital of Slipstream ICP Pty Ltd., which separately holds an option to purchase the legal and beneficial ownership of the tenements being acquired.
Slipstream may pay A$200,000 in cash and grant a 2% gross smelter royalty to prospector Vernon Strange upon the exercise the option to acquire the tenements.
In addition, Peninsula Mines will raise up to A$2.0 million to fund the acquisition and initial exploration over the Western Australia gold tenements, scheduled to take place in early 2020.
Upon the deal's completion, expected in mid-January 2020, the firm proposed a name change to Xantippe Resources Ltd., pending shareholder approval.
Earlier this month, Peninsula Mines said that a previously announced deal with Battery Mineral Resources Ltd. to merge their graphite tenements in South Korea into one company, Korea Graphite Co. Ltd., will no longer proceed.