MELBOURNE: Australian mining company Peako Limited announced it has signed binding agreements to acquire a portfolio of six gold exploration projects in Saudi Arabia covering 862 square kilometers in the country’s Central Arabian Gold Region.
The acquisition, funded through a $5.17 million share placement, gives Peako 100% interest in 10 exploration licenses adjacent to operating gold mines, including the 2-million-ounce Sukhaybarat and 3.4-million-ounce Bulghah deposits.
All projects are within 65 kilometers of producing mines.
“This acquisition is a major step for Peako,” said Chairman Gernot Abl. “It gives the company exposure to a large and underexplored gold district with multiple historical gold intercepts, several immediate drill-ready targets and genuine district-scale discovery potential.”
High-Grade Targets Ready for Drilling
Three prospects have been identified for immediate drilling based on historical results. At the flagship Sukhaybarat South project, prior reverse circulation drilling returned intercepts including 4 meters at 11.32 grams per tonne gold. At Jabal Jumaymah, scout drilling hit 7 meters at 10.12 g/t gold from 18 meters depth, with rock chip samples reaching 41 g/t. At Wadi Jarir, a shallow hole ended in high-grade mineralization at just 40 meters depth, returning 2 meters at 13.53 g/t gold — results that were never followed up due to expiry of a prior license.
All three systems remain open along strike and at depth.
The portfolio also includes two earlier-stage prospects. Bulghah East hosts a 10-kilometer gold-in-soil anomaly running parallel to the 3.4-million-ounce Bulghah mine. Ad Dirabi features a sheeted vein system with historical rock chip values up to 33.6 g/t gold, a mineralization style that has produced multi-million-ounce deposits elsewhere.
Saudi Arabia as a Mining Destination
Saudi Arabia has opened its mining sector to foreign investors as part of its Vision 2030 economic diversification program. Mining legislation permits 15-year tenure and 100% foreign ownership, with a 1.5% government royalty on gold and a corporate tax rate of 20%. The government offers exploration incentives including cash rebates of up to $2 million per license and interest-free debt funding for mine development.
The country was ranked a top-10 global mining investment destination in the 2025 Fraser Institute Annual Survey of Mining Companies. Barrick Gold, Zijin Mining, Ivanhoe Electric and Hancock Prospecting are among the majors already active in the country.
Strategic adviser Tony Manini said Saudi Arabia’s gold discovery cycle is at an early stage, with approximately 36 million ounces in resources and reserves defined to date and 20% growth recorded in 2025 alone.
“The Arabian-Nubian Shield geological domain hosts several world-class orogenic gold systems similar in style and setting to those of Western Australia and West Africa,” Manini said, noting that unlike those regions, Saudi Arabia’s exploration had until recently been dominated by a single state-affiliated operator, Ma’aden Exploration, leaving large areas untested.
New Team and Board
The transaction includes two key appointments. Marcus Harden, president of TSX-listed Gladiator Metals Corp. and a co-founder of Saudi-focused DesertEx, will join Peako’s board as a non-executive director. Oliver Jones, a Saudi-based exploration geologist with 14 years’ experience in the country’s minerals sector and co-founder of DesertEx, has been appointed exploration manager. Together they bring more than 14 years of Saudi Arabian gold exploration experience.
The company also announced that director Dr. Louis Bucci will resign from the board upon completion of the acquisition.
Deal Structure and Funding
The $5.17 million placement will be issued at $0.004 per share, a 40.8% discount to the 15-day volume-weighted average price of $0.0068. The placement includes $625,000 committed by directors and management, subject to shareholder approval.
Consideration to the vendors includes a $100,000 cash payment, 200 million shares and approximately 955 million performance rights tied to drilling and resource milestones, plus a 1% net smelter returns royalty. Legal title to the projects can only transfer to Peako 12 months after the licenses were granted, in accordance with Saudi Arabian mining law. Peako will hold beneficial ownership and operational control in the interim.
An extraordinary general meeting to approve the transaction is scheduled for late July 2026. First drill programs are expected to begin in the third quarter of 2026.
Peako trades on the Australian Securities Exchange under the ticker PKO.
