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- Beacon Minerals (BCN) is buying two new tenements in WA’s Eastern Goldfields
- The company has signed a sale agreement with Geko Pit to acquire a mining lease and miscellaneous licence for roughly $7.8 million in cash plus $3 million in royalties based on production
- As part of the deal, Beacon has granted Geko a three-month option to acquire the tenements back for free starting on December 31, 2026, and if it doesn’t exercise this option, Beacon will retain the tenements
- The tenements lie near Beacon’s Jaurdi gold project, and the company believes the purchase will complement its current operations
- BCN shares are up 7.69 per cent to trade at 2.8 cents at 11:17 am AEDT
Beacon Minerals (BCN) will acquire two new tenements within the Eastern Goldfields region of Western Australia.
The company entered a binding sale agreement with Geko Pit to acquire its mining lease M15/621 and miscellaneous licence L15/355.
Beacon will pay Geko roughly $7.8 million in cash, as well as $3 million in royalties from production at a rate of four per cent of the recovered gold until a total of $10.75 million in consideration has been paid.
Beacon will also pay $50,000 once the acquisition settles for Bulletin Resources to waive its interests and rights in the tenements.
As part of the agreement terms, Geko will have the option to acquire the tenements back for nil consideration during the option period between December 31, 2026, and March 31, 2027. If Geko doesn’t exercise its option during this period, Beacon will retain the tenements.
Beacon Minerals said the acquisition aligned with its strategy of increasing the mine life at its Jaurdi gold project by acquiring projects that build mine reserves and support its current operations.
The Jaurdi Gold Processing Plant is strategically located just 15 kilometres from the Geko tenements which Beacon plans to leverage to realise the tenements’ potential.
BCN shares were up 7.69 per cent to trade at 2.8 cents at 11:17 am AEDT.
