Ausgold has entered a binding agreement to acquire approximately 860 hectares of freehold land, crucial for the development of its Katanning Gold Project (KGP) in Western Australia (WA).
This acquisition includes land previously under legal dispute, which has now been discontinued, allowing Ausgold to proceed with its project plans without further legal challenges.
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The land in question is part of Ausgold’s mining licence ML70/211 and was the focus of legal action that has been ongoing since August 2023.
The acquired land hosts a significant portion of KGP’s mineral resource and is essential for the project’s proposed development footprint, as detailed in a definitive feasibility study (DFS) completed in June.
The agreement also provides Ausgold immediate access to exploration and studies, enabling optimisation of the project’s mine plan, which could add additional life-of-mine gold production and reduce mining costs.
Under the agreed terms, the vendors are required to vacate the land by 28 February 2027, in time for the expected launch of mining operations.
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By GlobalDataAusgold is set to start a multi-rig drilling programme targeting high-grade areas within the land, which were previously inaccessible.
The total consideration for the land acquisition is A$35m ($22.4m), with A$15m in payments scheduled for August 2025 and A$20m upon a final investment decision, or August 2026, whichever comes first.
The company reported having A$45m cash on hand as of 31 July 2025.
Ausgold executive chairman John Dorward said: “Securing this land is the key de-risking event for the development of the KGP. Land access issues, which have impaired the optimal development of the Katanning Gold Project up this point, have now been removed and we can now get on with the unfinished business of determining the full potential of this emerging gold district.
“Significant gold endowment was artificially excluded from the DFS due to previous tenure constraints, and we look forward to showcasing the full potential of the KGP.”
This June, Ausgold entered a farm-in agreement with Critica for exploration licence E70/5077, adjacent to its Kulin gold project in WA.
This agreement allows Ausgold to earn up to a 70% interest in the licence by investing a total of A$610,000 over three and a half years.
