(Alliance News) - Shares in Wishbone Gold PLC rose on Monday as it announced the acquisition of a 67 square kilometres of mineral explorations tenements in the Paterson Range region of Western Australia.
Shares in the precious metals trading and exploration firm were 16% higher at 4.00 pence on Monday in London.
The area to be acquired comprises three exploration licences: 45/5297, 45/5408 and 45/5409.
Licence 45/5297 is a 57.4 square kilometres and located south-west of the Telfer gold mine. Meanwhile, 45/5408 and 45/5409, which are 6.4 and 3.2 square kilometres respectively, are located southeast of Telfer.
Wishbone has signed a 45-day option to acquire the projects, agreeing to pay the three vendors an option payment of GBP50,000.
The company has already started due diligence on the projects, and should the acquisition proceed, Wishbone will pay an additional GBP183,333 in cash, issue 11.1 million shares valued at GBP366,667 in total, and 5.6 million warrants to subscribed for one new Wishbone share each.
"The Paterson Ranges host some of the most exciting gold and copper mines and discoveries in the Western Australian Pilbara region made in recent years. The best acreage is tightly held and thus to secure a deal on these assets is a very significant development for Wishbone. As previously advised, Wishbone already has advanced exploration assets in Australia and therefore has the necessary geological consultants in place to progress all exploration programmes," said Chair Richard Poulden.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Wishbone (WSBN)