Wishbone Gold signs option to acquire Patersons Range Project

(Sharecast News) - Precious metals trading and exploration company Wishbone Gold has signed an exclusive 45-day option to acquire ownership of 67 square kilometres of granted mineral exploration tenements in the Patersons Range region of Western Australia, it announced on Monday.

The AIM-traded firm said the Patersons Range Project has three approved exploration licences, being 45/5297, 45/5408 and 45/5409.

It described exploration licence 45/5297 as a large is 57.4 square kilometre tenement, located 13 kilometres south-west of the Telfer Gold Mine, which is operated by Newcrest Mining.

Exploration licences 45/5408 and 45/5409, meanwhile, cover 6.376 square kilometres and 3.188 square kilometres respectively.

They are located about 15 kilometres south-east of Telfer, and about 25 kilometres south-west of the new Havieron gold discovery operated by Greatland Gold and Newcrest Mining.

Wishbone said it had signed an exclusive 45-day option to acquire the Patersons Range Project, and agreed to pay the vendors an option payment of £50,000.

The company said it had already started due diligence on the projects, and would complete that during the 45-day option period.

Assuming that Wishbone acquired the projects, it said it would issue the vendors, being Peter Romeo Gianni, Geonomics Australia and David Anthony Lenigas, an additional £183,333 in cash, issue 11,111,111 new ordinary shares at a deemed issue price of 3.3p, and 5,555,555 warrants to subscribe for one new share each.

The acquisition warrants would be exercisable for a period of 24 months from admission of the acquisition shares, at the 3.3p price.

Wishbone said the cash element of the proposed acquisition could be funded from the recent exercise of options following its placing in August.

"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," said chairman Richard Poulden.

"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."

At 1330 BST, shares in Wishbone Gold were up 13.36% at 3.91p.