- Strickland Metals (STK) has purchased Silver Lake Resources’ (SLR) 37 per cent interest in the Horse Well joint venture
- The company offered $1.75 million cash, in exchange for securing 100 per cent ownership of the Horse Well Project
- Strickland Metals is already planning exploration drilling programs to begin at the project as soon as possible
- Strickland Metals is up 13.6 per cent, trading at 2.5 cents per share, while Silver Lake Resources is down 2.73 per cent, trading at $1.78 per share
Strickland Metals (STK) has purchased Silver Lake Resources’ (SLR) 37 per cent interest in the Horse Well joint venture.
The Horse Well Gold Project consists of 1000 square kilometres of terrain, located in Western Australia’s north-eastern Goldfields region. The advanced gold exploration project previously operated under a joint venture agreement between Strickland Metals and Silver Lake Resources.
However, Strickland recently issued Silver Lake with a binding offer for the purchase of its 37 per cent interest in the joint venture. Silver Lake has accepted the offer, giving Strickland 100 per cent ownership of the Horse Well Project.
As consideration for the acquisition of interest, Strickland will pay Silver Lake $1.75 million in cash from immediately available funds. The company has already paid a non-refundable deposit of $20,000, which will be deducted from the consideration at the transaction completion.
The transaction’s completion is dependent on Strickland completing its pro-rata right issue, which it announced in April. It is also subject to the two companies terminating the Horse Well joint venture, after which the parties will enter and execute a more detailed sale and purchase agreement.
The companies expect the transaction to reach completion within 60 days.
Strickland Metals is already planning exploration drilling programs for the project, which it plans to kick off as soon as possible.
Strickland Metals’ CEO, Andrew Bray, expressed the company’s excitement at securing a pathway towards complete ownership of Horse Well.
“Going forward, Horse Well will be the company’s flagship project, and we’re particularly excited to begin drilling,” he said.
“There are a number of, in our opinion, ‘walk up’ targets which we plan to test as soon as possible, as well as major structures and systems which will be subject to more systematic work,” he added.
Strickland Metals is up 13.6 per cent, trading at 2.5 cents per share, while Silver Lake Resources is down 2.73 per cent, trading at $1.78 per share at 3:32 pm AEST.