Aruma Resources Ltd [ASX:AAJ] has announced today they’ll be selling their Slate Dam, Clinker Hill and Trojan gold projects to Black Cat Syndicate Ltd [ASX:BC8].
Aruma is an ASX-listed junior gold explorer with projects in Western Australia and in New South Wales. Black Cat has over 500km-squared tenements in Kalgoorlie, Western Australia.
What’s the deal?
Both companies have agreed to $500,000 for the three gold projects. According to the announcement, Black Cat has already paid a non-refundable deposit of $50,000 and will be paying the remainder on settlement which is expected to happen in early October.
Aruma said the sale allows them to concentrate on their other gold projects: Saltwater, Melrose and Scotia South in WA and NSW.
On the other hand, for Black Cat, the new purchases are close to their current resources in Kalgoorlie, as you can see in the map below:
Source: Black Cat Syndicate Limited
Slate Dam is 10kms east from their Bulong gold Project, which is in advanced exploration. Clinker Hill is next to Fingals Gold Project and in early-stage exploration and Trojan is 15kms east of Fingals Gold Project.
Black Cat has gone on a bit of a buying spree this year. Earlier this year they bought Fingals Gold project and Rowe’s Find from Silver Lake Resources Ltd [ASX:SLR].
The new acquisition increases the company’s landholdings by 52% to 756 square meters and Black Cat’s JORC mineral resources to 826,000 ounces.
Black Cat’s Managing Director, Gareth Solly, said on the deal:
‘This acquisition accelerates Black Cat’s move towards a target of more than 1Moz of Resources. The Trojan deposit has strong synergies to our Fingals Gold Project, presents a near-term mining opportunity with 115,000oz in Resource on a granted mining lease and will become part of our larger Fingals Gold Project.’
What could happen next?
Investors from either company weren’t too keen on the deal.
The AAJ share price has dropped 12.5% and at time of writing are trading at $0.007. Black Cat Syndicate shares were also down by 1.25%, trading at $79 cents at time of writing.
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