ALT Resources has signed a binding heads of agreement (HoA) to acquire a significant exploration package in the Mt Ida district in Western Australia from Latitude Consolidated (LCD).
Under the agreement, Alt will gain the Quinns and Mt Ida South projects, as well as LCD’s 80% stake in the Mt Ida JV.
The exploration package covers the Bottle Creek mining lease and contains existing JORC resources of 1.24Mt at 2.5g/t Au, for 97,300oz of Au.
It also expands Alt’s holding in the Australian region, enhancing significant exploration and development potentiality.
Alt Resources CEO James Anderson said: “The expansion of Alt’s portfolio through this acquisition, as well as the recent option to purchase agreement by the company for the Bottle Creek Gold Mine is in-line with the company’s strategy to work towards becoming a gold producer.
“The Mt Ida South and Quinns Projects contain 97,000 JORC-compliant gold ounces in satellite ore bodies.”
The deal requires Alt to make a cash payment of $400,000 to LCD within seven days of signing the HoA and issue $750,000 in tradeable fully paid ordinary ARS shares, carrying a voluntary escrow period of six months from the date of completion.
Alt would also grant $250,000 in options over fully paid ordinary ARS shares, with 3,125,000 in total and each one having an exercise price of 8 cents per unit and being exercisable for three years from the date of issue.
Furthermore, the company will make a cash payment of $600,000 to LCD on or before 30 March this year.
The issue of ARS shares under this acquisition may require shareholder approval.