M&A

GTI disposes of Niagara gold play to start-up

WITH its time and treasure increasingly focused on the hunt for US uranium, and high-grade gold hits being made in Western Australia's Kookynie gold field, GTI Resources has decided to sell its Eastern Goldfields interests to a new start-up.

The wider Kookynie district has been getting a fresh look lately

The wider Kookynie district has been getting a fresh look lately

IPO hopeful Regener8 Resources is looking to list this year with a A$4.5-5.5 million raising, including a $2 million priority offer to GTI shareholders, and will have GTI as a cornerstone shareholder thanks to the vending in of the Niagara gold project in the west of the Kookynie district.
 
The deal has a A$1.45 million value, with $150,000 cash, five million shares, worth about $1 million, and 1.5 million performance rights.
 
While the deal is conditional on Regener8 listing, it is designed to give the assets a dedicated focus, while GTI will advance its US uranium projects where exploration drilling for in-situ recovery-amenable uranium is underway at the Thor project in Wyoming's Great Divide Basin.
 
GTI chair Nathan Lude said the time was right to divest Niagara, given recent exploration successes in the Kookynie area.
 
Niagara is about 6km south-west of the town of Kookynie and covers over 5km of strike of the historical Niagara gold field, on either side of the Goldfields Highway,
 
The gold field was primarily mined between the 1890s and early 1900s, with a limited reopening in the early 1940s.
 
Genesis Minerals owns the historical Orion/Sapphire project immediately to the south, with resources of 48,000 ounces at 2.2 grams per tonne gold, while Iris Metals controls the Gladstone mine that reportedly processed 10,000 tons of ore grading 80gpt when it was worked.
 
Mineralisation is largely narrow quartz vein targets linked with two regional structural trends, one of which passes through Cosmopolitan, the largest mine that was worked in the neighbouring Kookynie field and is now owned by Metalicity and Nex Metals Explorations.
 
GTI estimates some 5100oz at 26gpt was pulled from mines within its tenements prior to 1915, including May‐White Cross; York‐Good Friday, and Christmas - all of which were considered priority targets by GTI.
 
Programs of work are already in place.
 
GTI commended the quarter with $4.7 million in cash
 
GTI shares have traded at 1.4-4.4c over the past year and were last traded at 2.1c, valuing it at $24 million.

 

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