RUA GOLD to acquire Siren Gold’s Reefton assets and become the dominant Reefton Goldfield explorer

10 July 2024

Originally shared on newswire.ca

Actively Advancing a District-Scale Discovery in a Tier 1 Jurisdiction:

  • Represents the next chapter in RUA GOLD’s development towards our goal to be a major gold producer in New Zealand.
  • Newly consolidated project represents one of the least explored, high-grade gold districts in the world.
  • Permits, access, and consents in place to be aggressively drilling following a district-wide reassessment of targets and potential on the combined land package.
  • The combination will increase from the tenement holding from ~34k hectares (ha) to ~120k ha and cover all known past production camps outside of Blackwater and the Globe Progress mine.
  • Potential for lower overall project capital expenditures through the development of a potential central processing hub.
  • Combination creates a bigger player in New Zealand, allowing greater opportunity to work alongside a pro-mining Government in helping them draft their Minerals Strategy for New Zealand.

Transaction Highlights

Under the terms of the Agreement, Siren shall receive:

  • A$2 million (C$1.8 million) in cash, of which A$1 million has been paid and the remaining A$1 million will be paid at the close of the Transaction; and
  • 83,927,383 fully paid shares of RUA GOLD representing A$18 million (C$16.6 million[1]), to be issued at the close of the Transaction with agreed contractual resale restrictions.

Company Shareholders

The Transaction will deliver the following benefits to the Company’s shareholders:

  • Increased scale and resources by combining projects and exploration teams.
  • Increased exposure to the highly prospective and under-explored Reefton Goldfield, as the largest landholder in the district with ~120k ha of combined tenements.
  • The tenements owned by Reefton host a total JORC-compliant inferred mineral resource estimate (at a 1.5 g/t Au cut-off grade) containing 444koz Au @ 3.81g/t Au and 8.7kt Sb @ 1.5% Sb[2] with the excellent opportunity to define further mineralization with aggressive exploration across the combined land package.
  • Improved investor visibility and positioning amongst peers; with the opportunity to broaden shareholder base.
  • High probability of future operational synergies (i.e., centralized infrastructure and workforce) by realizing economies of scale across the whole land package.
  • Continued exposure to the Company’s highly prospective asset, Glamorgan on the North Island of New Zealand.