Gascoyne Resources and Firefly Resources have agreed to merge, creating a leading, regional gold production and development business in the Murchison Region of Western Australia.
The Merger will combine two gold companies with complementary assets in the Murchison region, unlocking a number of synergies by leveraging Gascoyne’s available processing infrastructure at Dalgaranga and Firefly’s prospective suite of assets including its flagship Yalgoo Gold Project which is located only 110km by road from Dalgaranga.
The Merger is to be implemented by way of the Scheme, after which Gascoyne will continue to be led by Managing Director and CEO, Richard Hay, with Firefly’s Managing Director and CEO, Simon Lawson, joining the Board of Gascoyne as a Non-Executive Director.
Gascoyne and Firefly also intend to undertake a demerger of their copper-gold and lithium exploration assets in the Paterson, Murchison and Forrestania regions of WA into a new energy metals focused exploration company, to be named Firetail Resources Limited, which intends to apply to list on the ASX.
Richard Hay, Managing Director and CEO of Gascoyne, said the merger represents a key step forward in the company’s strategy of delivering value by extending mine life and increasing annual production at Dalgaranga.
“The integration of high-grade Yalgoo ore in our production plan moving forward has excellent potential to extend mine life, reinforcing Gascoyne’s position as a key gold producer in the Murchison region,” Mr Hay said.
He said the combination of Yalgoo and Dalgaranga tenements would unlock access to ~1,200km2 of highly prospective greenstone belts, with higher grade, shallow ore feed from Firefly’s Yalgoo anticipated to be processed at Dalgaranga in the future.
“Furthermore, the merger with Firefly will consolidate ~1,200km2 of the Yalgoo and Dalgaranga greenstone belts under single ownership, significantly enhancing the exploration upside potential with over 100 high quality targets,” he stated.
“Any discoveries can quickly be brought into production at Gascoyne’s high quality, low cost Dalgaranga processing plant.”