SYDNEY: Recharge Metals Ltd (ASX: REC) has entered into a binding agreement to acquire 100% ownership of the Sunset Well Gold Project in the Leonora district of Western Australia, the company announced Thursday.
The acquisition includes the Prospero Deposit, which hosts a shallow Inferred Mineral Resource of 2.87 million tonnes at 1.0 g/t gold for 94,500 ounces, reported in accordance with the JORC Code (2012).
The project, located approximately 10km east of Leonora and within 100km of seven operating gold processing plants, comprises 10 granted prospecting licenses, 15 prospecting license applications, and four exploration license applications covering 181 square kilometers.
Prospero has not been drilled since the 1990s, with only three holes extending below 100m vertical depth, leaving the deposit open along strike and at depth, according to the company.
Historical drilling has returned high-grade near-surface intercepts including 36m at 2.73 g/t gold from 32m, and 2.9m at 6.35 g/t gold from 101.9m including 0.8m at 21.7 g/t gold.
The broader tenement package contains two district-scale structures interpreted to control gold mineralisation: the 10km Prospero Shear Zone and the 8km Flanders Shear Zone, both containing numerous historical drill results that remain untested by modern exploration.
To fund the acquisition and exploration, Recharge has received firm commitments for a A$3.75 million placement to sophisticated and professional investors at A$0.01 per share. The company is also undertaking a A$2.0 million pro-rata non-renounceable rights issue to existing shareholders on the basis of four new shares for every five shares held, at the same issue price.
The consideration for the acquisition comprises 260 million fully paid ordinary shares valued at A$2.6 million, subject to shareholder approval, plus up to A$25,000 in expense reimbursement.
Recharge will also strengthen its board with the appointments of Samuel Ekins as Executive Technical Director, Ben Jones as Non-Executive Director, and Brett Keillor as Strategic Technical Advisor, pending completion of the acquisition.
Ekins brings experience from Wildcat Resources Ltd (ASX: WC8), where he was managing director during the discovery of the Tabba Tabba lithium project. Keillor is a two-time recipient of the Association of Mining and Exploration Companies’ Prospector of the Year award.
“Sunset Well represents an advanced exploration asset anchored by the Prospero Deposit… which remains open at depth and along strike and has not been drilled since the 1990s,” said Recharge Managing Director Felicity Repacholi.
Drilling preparations are well advanced, with the company positioned to commence drilling promptly following transaction completion and receipt of remaining approvals.
The rights issue is expected to open on March 3 and close on March 27, 2026.