Rua Gold Closes On Purchase Of Reefton Assets, Now Holds Claims On 95% Of District
FULL DISCLOSURE: This is sponsored content for Rua Gold.
Rua Gold (TSXV: RUA) has as of this morning completed the acquisition of Reefton Resources Pty from ASX-listed Siren Gold. With the closing of the transaction, Rua has now obtained claims that cover 95% of the Reefton Goldfield.
On a combined basis, Rua’s Reefton project now covers 125,000 hectares, and includes all past mine camps in the region outside of the Blackwater and Globe Progress mines. The under-explored high grade gold district is said to represent the next chapter for Rua’s progression towards its goal of becoming a major gold producer within New Zealand.
Rua is now in the process of integrating data from Siren’s Reefton properties, which will be included into the VRIFY AI drill targeting platform that is used by Rua, a process which quietly began in July. At the same time, a third drill rig has been mobilized to site, which is set to focus on the Auld Creek target, which has the opportunity for a near surface resource.
The other two drill rigs currently in operation meanwhile are focused on the Murray Creek and Capleston targets. Further targets are also currently being analyzed for potential drilling. Permits, access, and consents are already in place for an aggressive drill program to be undertaken, following a district-wide assessment of targets.
READ: Rua Gold Hits 34.1 g/t Gold Over 0.2 Metres At Reefton
“Today marks a pivotal point in RUA GOLD’s development. With the completion of this Transaction, the Reefton district is largely under control of one company. This creates the opportunity to develop a world-class, scalable mining operation in an area that had high-grade production and is considerably underexplored at depth,” commented Robert Eckford, CEO of Rua.
Under the terms of the transaction, Rua paid C$1.8 million in cash, and issued C$16.6 million in shares in order to obtain the asset. The company also invested $1.8 million into Siren Gold. A total of 83.9 million common shares were issued by Rua, with Siren now holding a 26% interest in the company. Siren’s Chairman, Brian Rodan, has also joined Rua’s board of directors.
Rua Gold last traded at $0.16 on the TSX Venture.
FULL DISCLOSURE: Rua Gold is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Rua Gold on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
