FSX will acquire all the issued and outstanding securities of WDR, in exchange for 16.8 million common shares to WDR shareholders, 526,835 share purchase warrants to the WDR warrant holders and 1,553,520 options to the WDR stock option holders
FSX to acquire Wild Dog Resources. (Credit: omid roshan on Unsplash)
Fosterville South Exploration (FSX) has signed an agreement with Wild Dog Resources (WDR) to acquire a significant 2,166km² mineral exploration land package in Papua New Guinea.
The land package included in the acquisition comprises multiple Exploration Licenses (EL) and Exploration License Applications (ELA).
It includes both early-stage and advanced-stage exploration targets with high-grade epithermal vein and porphyry-style mineralisation present.
Both companies will negotiate and finalise the terms of a potential definitive share purchase agreement.
FSX will acquire all the issued and outstanding securities of WDR, in exchange for 16.8 million common shares to WDR shareholders, 526,835 share purchase warrants to the WDR warrant holders and 1,553,520 options to the WDR stock option holders.
FSX CEO Bryan Slusarchuk said: “Papua New Guinea is home to multiple world-class mining, development and exploration projects and the country hosts some of the most incredible geology on earth.
“Through the rapid growth of K92 Mining in PNG, the recent announcement regarding Wafi-Golpu moving forward and of course, the ongoing corporate discussions between Newmont and Newcrest, the amazing mineral potential of PNG is becoming more widely known.
“Many shareholders of FSX have invested in the PNG mining sector and we are confident they will share management’s enthusiasm for this acquisition.
“WDR has invested significant capital and time acquiring and advancing these assets in PNG and their hard work and strong technical execution both on the ground and corporately has put in place an excellent foundation for success as we move forward.”
The land package to be acquired by FSX includes Arau Project, which contains the EL2651 and ELA in the Kainantu region, Eastern Highlands Province, PNG.
The licence area also includes the Mt. Victor Prospect, where previous drilling found multiple phase intrusive complexes of copper and gold mineralisation.
The Wild Dog project contains two ELAs, EL2516 and EL2761, located on the island of New Britain and about 50km southwest of Rabaul and Kokopo, PNG.
The Kesar Creek Project has one ELA2711 and is located 10km west of the Kora gold mine owned and operated by K92 Mining.
FSX said that it has a significant cash position to further develop the projects, advancing the fieldwork and development of drill targets already completed by WDR in the past two years.
The company said its team members are experienced in operating within Southeast Asian Island arc epithermal and porphyry mineralisation environments and specifically in PNG.