Perth-based mineral exploration and resource development company Cazaly Resources announced that it has reached an optional agreement to purchase all the shares in private exploration company Yamarna West at a cost of $15,000.
The option gives Cazaly the exclusive right to the purchase for a two month period. The purchase price, if exercised, is 2.5 million fully paid ordinary Cazaly shares (Initial Shares), 2.5 million Cazaly Options exercisable at double the price of the Initial Shares with an expiry date 3 years from issue, and 2.5 million Cazaly options exercisable at three times the price of the Initial Shares with an expiry date of 4 years from issue.
Yamarna West’s key asset is exploration licence application E38/3111 located in the north-eastern goldfields of Western Australia.
It covers the majority of the Mount Venn greenstone belt, which is associated with the Yamarna Shear, host to Gold Road Resources’ emerging world class Yamarna Gold Project.
Commenting on the agreement, Cazaly’s joint Managing Director Nathan McMahon said:
“It is rare to secure such a large land position in an area rapidly becoming known as a world class gold camp,” Mr McMahon stated.
“Coupled with the facts that the geological setting is analogous to the 6 million plus ounce Gruyere gold deposit and has had very little systematic modern exploration makes the Mount Venn project a particularly exciting opportunity for the company.”