Perth-based gold and base metals explorer Artemis Resources has announced the acquisition of highly prospective tenements in the West Pilbara and Yandal Greenstone Belts in Western Australia.
In what is primarily an all-share deal, ASX-listed Artemis will acquire 100 percent of Karratha Metals, a company which has interests in 45 tenements in the region.
The deal also includes a tenement package Karratha is currently acquiring from Legend Mining, and which comprises a 40% interest (with the ability to earn up to a 70% interest) in the Mt Marie iron project. On completion, Legend will hold 12.5 percent of Artemis.
“The proposed transaction provides the Company with several quality projects, four of which are gold in an historic gold producing area,” said Guy Robertson, Artemis executive director.
“Artemis will hold one of the largest exploration portfolios in the West Pilbara.”
The acquisition increases the company’s exposure to gold assets, including JORC inferred resources, of 91,000 tons at 10 g/t, and takes the total gold exploration area in the West Pilbara, Ashburton and Yandal provinces to 1,120 square kilometres.
The new projects are close to regional hub Karratha infrastructure and operating mines.
Artemis will have a market capitalization of just over $12 million after the acquisition is complete.
The deal advances the company’s strategy of developing a significant gold inventory through exploration and acquisitions which have the potential to become mines and create shareholder value.
The acquisition is conditional on its acceptance by 75 percent of Karratha shareholders. Major shareholders holding more than 75 percent of the company have already accepted the offer.