Penny West has a current estimated resource of 230,000t at 4.8gpt for 36,000 ounces after being developed in the early 1990s by Eastmet/Metana and yielding 121,000t at 21.8gpt for 85,000oz to 82m depth.
Spectrum will pay A$50,000 cash and issue the vendors Patina Resources and Plateaux Resources nearly 173 million shares at a deemed price of 0.55c per share.
That gives the transaction a headline value of $1 million.
Spectrum acquired the First Hit underground prospect earlier this month for $100,000 cash and $100,000 worth of shares.
Earlier this year it was on the cusp of acquiring a high grade opportunity in California but was thwarted by a wildfire that burnt the project to the ground.
Spectrum is led by geologist and former DJ Carmichael an...