Corazon Mining has signed a binding agreement with a fully owned subsidiary of Westgold Resources to acquire 100% of the Chalice Gold Project for A$25.7m ($18.3m).
The acquisition signifies Corazon's shift from a multi-commodity explorer to a dedicated gold developer in Western Australia (WA), fully funded and with a clear resource growth and production strategy.
The agreement grants Corazon a high-grade asset on a mining lease in the Goldfields region.
The Chalice project features an existing Joint Ore Reserves Committee (JORC) 2012 mineral resource of 191,000oz at 2.7 grams per tonne (g/t) gold, supported by a production history of 645,000oz.
Its location offers a pathway to low-capital expenditure gold production, with access to multiple processing facilities including Westgold's Higginsville plant just 22km away.
Mining at the Chalice site last took place in September 2014, when gold was priced at A$1,370/oz.
The current mineral resource estimate, based on a gold price of $1,700/oz, indicates significant potential for resource growth amid the elevated gold price environment.
Historically, Chalice has demonstrated strong high-grade gold production, with 517,000oz at 5.6g/t from open-pit mining and 39,000oz at 5.5g/t from underground operations between 1995 and 1999.
An additional 89,000oz at 4.35g/t were produced from 2011 to 2014.
Upon the transaction's completion, Westgold will hold a 19.9% stake in Corazon, aligning interests for future operational cooperation.
Corazon plans to finance the acquisition through a capital raise of A$16.5m, pending shareholder approval, which will also support further exploration and related expenses.
The acquisition will involve an upfront cash payment of A$8m, the issuance of equity shares worth A$6.7m and deferred payments tied to key milestones.
Post-acquisition, Corazon expects to retain approximately A$12m in cash reserves to fund its initial drilling and pre-production studies.
In line with its growth objectives, Corazon will commence a 15,000m drilling campaign at Chalice, targeting resource extension and new exploration areas.
Parallel exploration efforts at the Two Pools and Feather Cap projects aim to enhance Corazon's asset base.
Corazon Mining managing director Simon Coyle said: “The acquisition of the Chalice Gold Project is a genuinely transformational step for Corazon. Chalice is a proven, high-grade gold system that has produced nearly 650,000oz, and with a resource that remains open in multiple directions, we believe the best discovery work is still ahead of us.”
In October 2025, the company signed a binding heads of agreement with RBH Mining for a 12-month exclusive option to acquire an 80% interest in the Feather Cap Gold Project.
