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Mawson Resources diversifies into Australia and adds high quality gold assets to its portfolio

Nagambie holds 2,000 sq km of ground on the Waranga tenements, including the Nagambie gold mine

MAWSON RESOURCES LTD -
"Victoria is one of the world's largest orogenic gold provinces, with more than 80 million ounces of gold mined since the 1850s," said Mawson CEO Mike Hudson

Mawson Resources Ltd (TSE:MAW) (OTCMKTS:MWSNF) unveiled a deal Thursday, which sees it acquire three high-grade gold assets in the Victoria goldfields of Australia and become a cornerstone investor in major landholder Nagambie Resources Ltd (ASX:NAG). 

The latter holds 2,000 sq km of ground on the Waranga tenements, including the Nagambie gold mine and the deal diversifies Mawson and gives it a pipeline of potential new projects. 

"Victoria is one of the world's largest orogenic gold provinces, with more than 80 million ounces of gold mined since the 1850s," said Mawson CEO Mike Hudson. 

READ: Mawson Resources gets off to good start with winter drill program as it advances Finnish gold, cobalt project

"Following the recent high-grade discovery success at Kirkland Lake Gold's Fosterville mine, the significant potential of shallow orogenic deposits is now better understood."

This new opportunity for the Finnish-focused resource group gives it the outright purchase and joint venture of three high-grade, Fosterville-style (shallow-orogenic or epizonal) exploration projects with numerous historic mines, that lack drill testing to depth.

It also provides Mawson with the right of first refusal on one of the largest land packages of high priority exploration ground in the state, he said.

Nagambie and Mawson have signed three binding letters and definitive agreements are targeted for on or before March 10, this year, it added.

Mawson will subscribe for 50 million Nagambie shares and take a 10% stake in the firm.

As consideration, Nagambie will receive 8.5 million Mawson shares or around 4.7% of the capital.

The deal "diversifies and adds further high-quality quality gold exploration assets to the company in another Tier 1 gold district, while we maintain a significant focus on building resources at the Rajapalot project in Finland where five drill rigs are currently operational," said Hudson.

Mawson will buy 100% of Nagambie's Clonbinane Goldfield Pty Ltd, which holds the shallow orogenic (or epizonal) Fosterville-style project, and is open at depth and along strike.

Mining there started in the 1880s with total production being reported as 41,000 ounces gold at a grade of 33 grams per ton (g/t) of the yellow metal.

It will also have the right to earn up to a 70% joint venture interest in Nagambie's Redcastle exploration license by spending A$1 million at the property over five years.

Mawson will also have the right to earn up to a 70% joint venture interest in Nagambie's Doctor's Gully retention license, again by spending A$1 million over five years.

Shares in Toronto advanced over 7% to stand at C$0.28.

Contact the author at giles@proactiveinvestors.com

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