NickelX has finalized a binding agreement to acquire 100% ownership of the Penny South gold project from Aurum Resources. The project, located approximately 550 meters south of the high-grade Penny West/North Gold Mine operated by Ramelius Resources, is situated in a region known for its significant gold mineralization potential.
The Penny South Gold Project spans roughly 9.95 square kilometers and includes about 2.5 kilometers of the highly prospective Penny West Shear. As part of the acquisition, NickelX will pay A$60,000 (about $40,588) in cash and issue three million shares.
Additional deferred cash considerations of A$500,000 are contingent upon the confirmation of gold resources according to the JORC Code. The acquisition’s completion is subject to shareholder and regulatory approvals.
NickelX Managing Director Peter Woods expressed enthusiasm about the acquisition, stating, “We are extremely pleased to have secured the Penny South Project. Adding this promising gold exploration asset adjacent to one of Western Australia’s highest-grade gold mines and in a district currently active with M&A activity significantly strengthens our portfolio.”
Woods noted the potential for substantial value at depth, given the minimal deeper drilling and absence of diamond drilling in the area. Historic drilling has uncovered numerous gold intersections, with over 1,000 drill holes completed, mostly using shallow rotary air blast and air core techniques.
The company, along with its consultants, plans to thoroughly review all available geological, geochemical, and historic drill-hole data. The goal is to identify high-priority drilling targets below 80 meters depth to unlock further value as gold market momentum continues.
