Koonenberry Gold to strengthen portfolio

Koonenberry Gold (ASX: KNB) is set to acquire a suite of projects from Global Uranium and Enrichment (ASX: GUE) and Gilmore Metals.

These projects – the Enmore gold project and the Lachlan projects – will increase Koonenberry’s existing gold and copper assets in NSW.

Under the acquisitions, GUE will receive 35m fully paid ordinary Koonenberry shares, while Gilmore Metals shareholders will receive 95m Koonenberry shares. All shares are subject to 12 months of voluntary escrow.

The acquisitions are subject to Koonenberry completing a minimum $2m fund raising, shareholder approval and the end of the Enmore gold project’s 2% net smelter royalty.

Koonenberry has already received firm subscriptions to raise $4.5m via the issue of 450m new shares to institutional and sophisticated investors at 1¢ per share.

Upon completion of the acquisitions, Gilmore Metals co-founder and director Darren Glover will join Koonenberry’s board while key employees will be onboarded to provide support to Koonenberry.

Enmore project

The Enmore project is located in the New England Fold Belt in NSW and covers an area of 134km².

The project hosts the Sunnyside, Borah and Lone Hand prospects, with up to 234g/t gold returned from previous drilling programs.

GUE managing director Andrew Ferrier says the company is pleased to have entered this agreement with Koonenberry.

“This deal not only creates value for both parties, but also enables Global Uranium to maintain a strategic focus on advancing our core uranium assets in North America, which have experienced significant and rapid progress over the past year,” he said.

Koonenberry has planned a drilling program at Sunnyside to test the high-grade shoot potential with additional work to involve the relogging and resampling of historical drill core, surface sampling and electrical geophysics.

Lachlan projects

Through the acquisition of Gilmore Metals, Koonenberry will acquire Gilmore’s existing interest in two joint venture agreements it has with Newmont Exploration, a subsidiary of Newmont Corporation (ASX: NEM).

The Lachlan projects comprise 10 exploration licences that are considered highly prospective for copper and gold, with up to 18.5% copper and 13.3g/t gold identified.

Koonenberry is now prioritising multiple pre-defined targets and prospects across the tenement portfolio to advance to drill ready status.

Results from this work will determine the next steps which will most likely include reconnaissance field work, geochemical surveys, drilling and geophysical work.

Koonenberry managing director Dan Power says the company is extremely excited to add all these assets to its portfolio.

“The Enmore gold project has some exciting historical high-grade gold assays in drilling, rock chips and underground workings with clear targets, a well understood geological model and a near-term opportunity to rapidly advance with drilling,” he said.

“The Lachlan projects include strategic landholdings in the Lachlan Fold Belt with early-stage results across multiple targets.

“We believe this portfolio of 100% owned and free carried projects are extremely value accretive for shareholders and have outstanding potential to yield a significant discovery.”