Edmonton-based
The junior recently signed an agreement with two Australian companies — Maxe-tec Australia and D’Aguilar Gold — to earn up to a 51% interest in the project, which includes a 120,000-tonne-per-year carbon-in-pulp mill and associated infrastructure.
To earn its interest, Western Pacific must spend about $2 million on exploration within two years, and replace bonds required by the Department of Mines. The goal is to prove up at least 300,000 oz. gold in high-grade underground vein systems, with a view to becoming a producer in the heart of one of Australia’s significant gold-mining camps.
To finance the acquisition, Western Pacific plans to issue at least 10 million shares and 5 million warrants (at 10 per share and 20 per warrant) to raise $1 million. In conjunction with the financing, to be completed on a “best-efforts basis,” the junior intends to apply for a listing on the Australian Stock Exchange.
The D’Aguilar mine project is in a region that has produced more than 3 million oz. gold from high-grade, underground reef systems. The project area covers numerous historic mines (including the Shamrock, Manubar and Tableland mines) that, since 1987, have turned out about 63,000 oz. gold from sporadic open-pit mining.
Western Pacific says the area is highly prospective for high-grade quartz vein deposits similar to those being exploited nearby on ground held by Australian-listed Gympie Gold Mines. Gympie has produced more than 34,000 oz. gold, at a grade of 8.37 grams per tonne, in its past financial year ended June 2000. Exploration will also target bulk-tonnage, medium-grade porphyry gold-copper deposits.
In addition to the earn-in rights, Western Pacific can buy the entire share capital of D’Aguilar Gold for $1.5 million within four years, subject to certain conditions.
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