- Nubian Resources (NBR) has signed a letter of intent to acquire three gold projects in Tasmania and Victoria, Australia, from Stavely Minerals
- The deal relates to the Mathinna and Lefroy projects in Tasmania, and the Fosterville East project in central Victoria
- Nubian has already paid a non-refundable deposit of C$94,900 in cash to Stavely, and will issue $2.27 million in shares upon signing of a definitive agreement
- The company said the acquisitions will complement its Australian portfolio, which includes the more advanced Yandoit Gold Project
- Nubian Resources (NBR) is currently up 25 per cent to 40 cents per share
Nubian Resources (NBR) has signed a letter of intent to acquire three gold projects in Tasmania and Victoria, Australia, from Stavely Minerals.
The deal relates to Mathinna and Lefroy tenements in Tasmania and the Fosterville East tenement in Victoria, all of which the company is expected to wholly acquire.
The Fosterville East project, located within the Bendigo Structural Zone, sits roughly 10 kilometres east of Kirkland Lake Gold’s prominent Fosterville Gold Mine.
Under the terms of the agreement, Nubian has already paid a non-refundable deposit of C$94,900 in cash to Stavely. There will now be a 60-day exclusivity period for the completion of due diligence and the formation of a definitive agreement.
Upon signing of the definitive agreement, Nubian will issue a number of share to Stavely equal to $2.7 million, based on the volume weighted average price five trading days prior.
The acquisition is expected to close by September 12, 2020, and remains subject to the approval of the TSX Venture Exchange.
Martin Walter, President and CEO of Nubian Resources, said the projects will be complementary addition to the company’s existing Australian portfolio.
“With the Fosterville East Project’s close proximity to the Fosterville Mine and the Lefroy and Mathinna projects having similar geology as central Victoria, these exploration projects are a perfect addition to the company’s more advanced Yandoit Gold Project that is at development stage.
“The company is working to finalise definitive documents for the Yandoit Gold Project and is looking forward to executing on its exploration and development plans in Australia,” he added.
Nubian Resources (NBR) is up 25 per cent and is trading at 40 cents per share at 11:25am EDT.