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Kin Mining raise $2.1M to fund gold project
  • Sky Metals (SKY) has now earned an 80 per cent interest on the Cullarin and Kangiara Gold Projects in New South Wales
  • Last year, the company signed a farm-in agreement with Heron Resources (HRR) to gain an 80 per cent interest if it spends $2 million on expenditure
  • The company has completed this conditions in less than 10 months
  • Heron will now have a free-carried 20 per cent interest for its expenditure until a definitive feasibility study is complete or Sky makes a $10 million contribution to expenditure - whichever comes first
  • Sky said that drilling is expected to recommence this month
  • On market close, Sky is down 3.57 per cent and is trading for 13.5 cents per share

Sky Metals (SKY) has now earned an 80 per cent interest on the Cullarin and Kangiara Gold Projects in New South Wales.

Last year, Sky signed a farm-in agreement with Heron Resources (HRR) to gain an interest in the New South Wales-based gold projects. In April this year, the company met the $400,000 spending fee which is half of the process to obtain an 80 per cent ownership of the projects from Heron.

Sky has now told Heron it has met the required expenditure by spending over $2 million across Cullarin and Kangiara.

Heron will now have a free carried 20 per cent interest for its expenditure until a definitive feasibility study is complete or Sky contributes $10 million in expenditure, whichever comes first.

CEO Mark Arundell said Sky has achieved the 80 per cent ownership in less than ten months after signing the agreement.

"Sky's forward exploration programs, including the drilling program at the Hume Target, will enable Sky to rapidly evaluate the gold potential of both projects," he said.

"Also, the prospectivity of the Cullarin Project targets are currently being evaluated at low cost by assaying of historic drillcore & soil sampling," he added.

What's next?

The company said that drilling is expected to recommence this month.

A multi drill rig is planned to discover the depth potential and extension of the high-grade Hume gold targets and to test the high priority McPhillamys style soil targets north of Hume target.

On market close, Sky is down 3.57 per cent and is trading for 13.5 cents per share.


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