Karora Resources (TSX: KRR) has acquired the Spargos Reward Gold project, located roughly 65 kilometres from its Higginsville gold operation in Western Australia. The project is expected to see cash flow as early as next year following a fast tracking of opoerations.
Acquired for A$4.0 million in cash along with spending commitments of A$2.5 million over a .5 year period, the project covers roughly 33 square kilometers of land in Western Australia. The project has a historic JORC resource estimate of 112,000 ounces of indicated gold at 4.4 grams per tonne, along with an inferred resource of 19,000 ounces of gold at 4.0 grams per tonne.
The seller of the property is also entitled to A$1.5 million in Karora common shares upon the commencement of production, and A$1.0 million in Karora common shares if new additional gold indicated resources of at least 165,000 ounces is found on the property.
The property is being viewed as a “bolt-on” to the current Higginsville operations given the proximity to the firms mill. The company currently intends to conduct follow up exploration on the Spargos property in the near term.
Karora Resources last traded at $4.03 on the TSX.
Information for this briefing was found via Sedar and Karora Resources. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
