Michelago will receive 1.8 million Golden Cross shares in return for the projects – Sunny Corner, Eurongilly, Wallendbeen, Prince of Wales/Tumblong, Cullulla, Breadalbane, and Billilingra - representing 2.7% of the company’s issued capital. The shares will be in escrow until November 30.

Golden Cross was down 0.5c to 10.5c in mid-afternoon trade.

Golden Cross managing director David Timms said the projects complement the company’s holdings in the central New South Wales Lachlan Fold Belt and would provide it with additional opportunities for exploration success.

The tenements contain a number of targets that warrant immediate attention, including drill testing, over the coming months. A number of major mining companies have expressed interest in some of the projects, Timms said.

Meanwhile, Michelago said it has agreed to acquire the New South Wales exploration interests held by its joint venture partner Sipa Exploration.

Michelago said it will pay nominal consideration for the interests and Sipa will retain a 2.5% gross gold production royalty and 2.5% net smelter return royalty for other minerals.

As a result of the transaction, Michelago’s interest in the Parkes Project will increase from 49% to 100%, and in the Cow Flat Project from 25% to 100%.

The Wiseman’s Creek project is currently a joint venture between Michelago (24.8%), Allstate Explorations (24.5%) and Sipa (51%), with Allstate holding pre-emptive rights.

Michelago’s stake will increase to 75.5% if Allstate does not exercise its right of refusal, otherwise it will increase to 50%.

Michelago will also move to 100% ownership of the Dirnaseer project.

The company has also revised gross revenue estimates for the September quarter down to $80-120,000 from $350-500,000 for its wholly-owned subsidiary Inventory Management Systems.

Michelago shares were up 0.2c to 3.7c.