- Indiana Resources (IDA) has signed a deal with private company Patron Resources to purchase South Australian gold projects
- The company has agreed to purchase Patron's subsidiaries, Endeavour Copper Gold and Earea Dam Mining in a cash and scrip based transaction
- Together the companies hold 14 exploration licences and one mining lease in the Central Gawler Craton Gold Province
- Indiana is currently awaiting a data review to determine an immediate drilling program
- Company shares are up 15 per cent and are trading for 4.6 cents per share
Indiana Resources (IDA) has signed a deal with private company Patron Resources to purchase South Australian gold projects.
The company has agreed to purchase Patrons subsidiaries, Endeavour Copper Gold (ECG) and Earea Dam Mining (EDM) in a cash and scrip based transaction.
Together ECG and EDM hold 14 exploration licences and one mining lease in the Central Gawler Craton Gold Province. Indiana believes the craton has outstanding potential for gold.
Indiana will pay a non-refundable cash deposit of $30,000 to Patron within seven business days from signing the binding term sheet. Patron will be able to keep this deposit even if the deal falls through.
The company will have to pay $15,000 for the rehabilitation bond for exploration work. Indiana will also give Patron 18 million shares and a further $95,000 cash on completion of the transaction.
Patron will also receive two tranches of performance shares, which will be converted to ordinary shares in Indiana following certain milestones.
"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," Non-Executive Chair Bronwyn Barnes said.
"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," she added.
On the market today, Indiana is up 15 per cent and shares are trading for 4.6 cents per share at 3:46 pm AEST.