Southern Cross Gold has been granted approval from the Foreign Investment Review Board to acquire key land on properties surrounding its prospective Sunday Creek gold project in Victoria.
In October, Southern Cross Gold struck a deal to acquire two residential holdings from arm’s length third parties for $1.9 million. It also entered into a share swap agreement to acquire all shares in Sparr Nominees.
The deal with Sparr, which has now been approved by Federal Treasurer Jim Chalmers, will see the company obtain ‘substantial’ agricultural properties totalling 921.22 hectares (9.21km2) and approximately $18.75 million in cash.
The current owner and seller of Sparr is Darren Morcombe, who will become a substantial shareholder of Southern Cross Gold once the transaction is finalised.
Consideration for 100 per cent of the shares in Sparr is 22,088,670 shares of Southern Cross Gold, the issue of which did not require shareholder approval. The transaction is expected to be finalised in the coming days.
“These agreements secure freehold land that directly surrounds the Sunday Creek project together with significant cash,” Southern Cross Gold managing director Michael Hudson said.
“All are critical for securing future pathways for the Sunday Creek project, which is developing into an expanding and significant global gold-antimony discovery.”
Southern Cross Gold currently owns 133.29 hectares (1.33km2) of freehold land at Sunday Creek, which form the key portion in and around the main drilled area at the project. The acquisition will increase that total to 1054.51 hectares (10.5 km2).
Earlier this year, the company discovered a new and large gold-antimony deposit below a historic gold mine part of Sunday Creek. The company said the discovery means it’s on its way to “meet (its) aim to double the size of the Sunday Creek exploration target”.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
