Lancaster Resources has completed the acquisition of the Lake Cargelligo gold project in New South Wales, Australia.
Effective as of 30 June 2025, the acquisition was carried out by Lancaster Gold Australia, a fully owned subsidiary of Lancaster Resources.
The acquisition includes a total purchase price of C$210,000 ($153,811), comprising C$10,000 in cash and ten million Lancaster common shares valued at C$0.02 per share at the agreement signing. The shares are subject to resale restrictions over 24 months.
Moreover, the agreement entails a 2% net smelter return (NSR) royalty with buy-back provisions and contingent milestone payments that could reach up to C$3.68m.
Lancaster president and CEO Andrew Watson said: “This acquisition, together with the formation of Lancaster Gold Australia, marks a key milestone in our strategy to build a strong precious metals portfolio.”
“The Lake Cargelligo gold project offers exceptional exploration upside with significant historical high-grade results, and we are excited to begin systematic exploration to unlock its full potential for our shareholders.”
The gold project spans over 28,768 hectares (ha) and is located in the renowned Cobar mining district, known for its rich gold and silver deposits.
The project offers a district-scale exploration opportunity with more than 25km of prospective strike and three primary target zones. The property is also strategically located 60km from the operational Mineral Hill Mine.
Lancaster Resources is planning to launch an extensive 2025 exploration programme at Lake Cargelligo, which will include modern geophysics, geochemical sampling, and drilling, as no such contemporary techniques have been applied to the area to date.
Earlier this month, Lancaster Resources decided to terminate its option agreement for the Alkali Flats lithium project in New Mexico, US, citing a prolonged downturn in the market.
This move is part of the company's strategy to focus on projects that are more likely to enhance shareholder value.
Additionally, Lancaster Resources expanded its gold portfolio in April 2024 by acquiring the Piney Lake Gold Property in Saskatchewan, Canada.
The property covers more than 2,267ha and is conveniently located near other significant mining projects in the region.
