Indiana Resources to acquire South Australia gold projects

PERTH: Indiana Resources Limited has executed a Binding Term Sheet with private company Patron Resources Ltd to acquire 100% of Patron’s subsidiaries, Endeavour Copper Gold Pty Ltd (ECG) and Earea Dam Mining Pty Ltd (EDM), in a cash and scrip based transaction, a news release said.

The Consideration for the acquisition is:

• payment of a non-refundable cash deposit of $30,000 to Patron within seven business days from the signing of the Term Sheet. Patron shall be entitled to retain the Deposit even if Completion does not occur,
• payment of the rehabilitation bond for exploration work on EL6184 and EL6185 of $15,000,
• 18,000,000 IDA Shares to be issued to Patron and a further $95,000 cash on Completion of the transaction.

Combined, ECG and EDM hold 100% of 14 granted exploration licences and one mining lease in the Central Gawler Craton Gold Province (Tenements). The Central Gawler Craton has outstanding potential for the discovery of significant gold deposits, as indicated by the Tunkillia (588,000 ounce gold resource), which adjoins the southern edge of the tenements and the historical mining centre of Tarcoola, which adjoins the northern edge of the tenements, where historic production and current resources total approximately 190,000 ounces.

Both Tarcoola and Tunkillia are now owned by Barton Gold Pty Ltd. In addition, Barton Gold also owns the Challenger Gold deposit, located 150km northwest of the tenement package which historically produced more than 1 million ounces.

Many smaller historical gold workings are present throughout the region and remain underexplored, including the Lake Labyrinth, Company Well and Earea Dam mines, which fall within the Tenement area.

The Tenements also contain the majority of the highly prospective Archaean Harris Greenstone Belts, similar in style to the WA greenstone belts, with significant potential for gold and base metals. These and several other targets previously identified by ECG and EDM are a high priority for Indiana’s follow up work programmes.

Indiana’s Executive Chairman Bronwyn Barnes said: “This acquisition delivers a strategic and advanced exploration package in a region that has historically producing mines and strong recent exploration success. Importantly, this transaction allows Indiana to actively explore in this exciting and low-risk region at a time of record gold prices. With multiple drill ready targets across the tenement package already identified, we are going to move quickly to target those areas that demonstrate strong potential for moderate to high-grade gold opportunities.

“With a high-level of activity currently underway across the business, this is an exciting time for Indiana, and I look forward to updating our shareholders on further important developments in due course.”