NickelX has signed a binding agreement to acquire 100% of the Penny South Gold Project from Aurum Resources. Located approximately 550 meters south of the high-grade Penny West/North Gold Mine operated by Ramelius Resources, the project is situated in Western Australia.
The Penny South Gold Project, covering 9.95 km², includes about 2.5 km of the prospective Penny West Shear. Historical production and recent discoveries in the area suggest significant gold mineralization potential.
Under the agreement, NickelX will pay A$60,000 ($40,588) in cash and issue three million shares to acquire the project. Additionally, A$500,000 in deferred cash considerations are contingent on confirming gold resources in accordance with the JORC Code. The acquisition is subject to shareholder and regulatory approvals.
NickelX Managing Director Peter Woods commented, “We are thrilled to acquire the Penny South Project. This acquisition enhances our portfolio significantly, given its proximity to one of Western Australia’s highest-grade gold mines and the current M&A activity in the district. With minimal deeper drilling conducted so far, we believe there is substantial value to be unlocked at depth and look forward to advancing this exploration asset.”
Historic drilling has revealed numerous gold intersections, with over 1,000 drill holes completed, primarily using shallow rotary air blast and air core methods. NickelX and its consultants plan to compile and review all geological, geochemical, and historic drill-hole data to identify high-priority drilling targets deeper than 80 meters below the surface.
