SYDNEY, AUSTRALIA: Middle Island Resources Limited (ASX: MDI), a gold explorer with a focus on the Barkly Super Project in the Northern Territory, has announced that it has agreed to buy the East Tennant project from Strategic Energy Resources Ltd (ASX: SER) for 18.24 million MDI shares, valued at $0.035 per share.
The East Tennant project consists of six exploration licenses covering 1,500 square kilometres in the highly prospective East Tennant region, which hosts several copper-gold and lead-zinc-silver targets. The project is adjacent to Middle Island’s existing Barkly Super Project, which covers 12,000 square kilometres and hosts the Crosswinds gold prospect.
The acquisition will expand Middle Island’s land position and target list in the East Tennant region, and is aligned with the company’s strategy to build value through exploration and consolidation of underexplored greenfields projects with potential to deliver world-class discoveries.
The deal is subject to shareholder approval and other customary conditions, and is expected to be completed within 90 days. The MDI shares issued to SER will be subject to a voluntary escrow period of at least 12 months.
Middle Island’s CEO, Roland Bartsch, commented: “The East Tennant region is highly prospective for the discovery of copper-gold, and lead-zinc-silver, and SER has assembled a portfolio of high priority targets which demand drill testing. The proposed purchase of the East Tennant project by MDI will expand the Barkly Super Project’s already considerable land position and target list, and is an exciting addition to MDI’s exposure to potential exploration success across the region.”
He added: “This transaction is aligned with MDI’s corporate strategy: to build value through exploration and consolidation of high-quality underexplored greenfields projects with potential to deliver world-class discoveries, adding value through efficiencies and growth of scientific understanding by focusing on a highly prospective region.”
Middle Island also owns the Sandstone gold project in Western Australia, which has a processing plant and a mineral resource of 746,500 ounces of gold.
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