CGN Resources has finalised a binding agreement to acquire the Desdemona Project from Patronus Resources, significantly expanding its landholding in the Leonora Gold Province in Western Australia.
The acquisition includes three mining licences, eight exploration licences and nine prospecting licences, totalling 142km², and places CGN alongside major players like Genesis Minerals and Vault Minerals with a total land package of 386km².
The newly acquired land lies directly along strike from several major gold mines including Gwalia, King of the Hills and Ulysses, which collectively hold more than 14 million ounces of gold.
The acquisition is structured to conserve cash for exploration activities while integrating Patronus as a shareholder.
Under the terms of the deal, CGN will issue five million ordinary shares to Patronus, representing around 4.3% of the company, valued at approximately A$500,000 ($350,120).
Additional payments are contingent on future developments, including A$250,000 upon declaring a Joint Ore Reserves Committee-compliant mineral resource exceeding 100,000oz of gold and A$500,000 upon deciding to mine.
Third-party consent is required for several tenements included in the acquisition.
The project area has been underexplored since the early 2000s due to industry focus on shallow targets and widespread cover constraints.
Despite this, historical drilling results show strong gold intercepts, suggesting substantial potential for new discoveries.
CGN plans to conduct comprehensive reviews and commence fieldwork to unlock this potential.
Once ownership transfers are complete and heritage agreements with the Darlot group are updated, CGN will begin detailed targeting studies and initial reconnaissance across the new tenure.
Planned activities include heritage surveys, drill planning, permitting and launching drilling programmes at its Leonora projects.
CGN Resources managing director Stan Wholley said: “This acquisition represents a genuine step-change for our Leonora growth strategy, delivering a major, district-scale landholding in the heart of one of Australia’s most productive gold districts.
“CGN already held a highly prospective footprint, but the addition of the Patronus project elevates us to a new level, positioning the company among the largest landholders in the Leonora District.
“The consolidated package captures some of the most sought-after geological settings known to host significant gold deposits. It offers everything required for project growth: the right gold-bearing stratigraphy, outstanding access, multiple nearby processing options and a proven history of gold endowment, supported by numerous walk-up drill targets.
“This acquisition delivers CGN a substantial pipeline of high-quality exploration targets. The expanded, contiguous land package provides a rare opportunity to apply disciplined, modern exploration across within a world-class gold terrain, positioning the company to unlock meaningful new discoveries.”
