 has executed a binding sale and purchases agreement for Red 5 Limited (ASX: RED) to acquire the Tarmoola pastoral lease, livestock and relevant equipment in the Goldfields, WA, for $3m cash.){kind=link}
Red 5 purchases Asra’s Tarmoola pastoral lease
Asra Minerals (ASX: ASR) has executed a binding sale and purchases agreement for Red 5 Limited (ASX: RED) to acquire the Tarmoola pastoral lease, livestock and relevant equipment in the Goldfields, WA, for $3m cash.
Asra will retain the exploration camp comprising the accommodation camp, kitchen, laundry, ablution facilities and access road, all located in an area approximately 10km2 and the subject of miscellaneous licence applications, 37/271 and 37/272, currently with the WA Energy, Mines, Industry Regulation and Safety Department (DEMIRS).
Proceeds from the sale will be used to support Asra’s upcoming exploration and drilling campaign across both its Mt Stirling and Kookynie gold projects.
Asra executive chairman Paul Summers comments on this.
“When the Tarmoola pastoral lease was first acquired in 2022, our prime intention was to establish and develop a location for the company to facilitate future exploration programs at the Mt Stirling gold project.
“The agreement with Red 5 allows us to retain the existing Tarmoola exploration camp and facilities, which is critical for Asra to house our exploration team as we embark on an extensive drilling campaign in the region.
“The pastoral lease sale will also significantly boost Asra’s treasury as we progress our drilling programs at Mt Stirling and Kookynie, which will deliver a steady flow of results over the next six months.
“The landscape for exploration companies in the current market is difficult, irrespective of the buoyant gold price, yet this sale has placed Asra in a strong position as we launch into our gold exploration strategy.
“We understand the frustration of shareholders recently, however, our dedicated exploration team has been working through a rich database of previously unanalysed drilling and geological data at both projects.
“This new interpretation has set the foundation for targeted exploration campaigns as we endeavour to grow our current gold resource in one of the most exciting gold-bearing locations of the Goldfields.”
The agreement was executed between Asra’s wholly owned subsidiary Tarmoola Holdings Pty Ltd and Greenstone Resources (WA) Pty Ltd, a wholly owned subsidiary of Red 5.
The purchase price includes the initial deposit of $250,000 received by Asra.