{"id":10697,"date":"2024-11-28T15:04:22","date_gmt":"2024-11-28T15:04:22","guid":{"rendered":"https:\/\/dailywashingtoninsider.com\/index.php\/2024\/11\/28\/rua-gold-acquires-siren-golds-reefton-assets-for-au22-million\/"},"modified":"2024-11-28T15:04:22","modified_gmt":"2024-11-28T15:04:22","slug":"rua-gold-acquires-siren-golds-reefton-assets-for-au22-million","status":"publish","type":"post","link":"https:\/\/dailywashingtoninsider.com\/index.php\/2024\/11\/28\/rua-gold-acquires-siren-golds-reefton-assets-for-au22-million\/","title":{"rendered":"Rua Gold Acquires Siren Gold\u2019s Reefton Assets for AU$22 Million"},"content":{"rendered":"<\/p>\n

Siren Gold (ASX:SNG) announced on Tuesday (November 26) that it has completed the sale of its wholly owned subsidiary, Reefton Resources, to Rua Gold’s (TSXV:RUA,OTCQQB:NZAUF)wholly owned subsidiary<\/strong> Reefton Acquisition<\/strong>.<\/strong><\/p>\n

Reefton Resources is the owner of the Reefton project in New Zealand.<\/p>\n

The sale will establish Rua Gold as a dominant landholder in the Reefton region, with approximately 1,196 square kilometers of tenements in the historical and past-producing Reefton Goldfields, which produced over 2 million ounces at 15.8 grams per tonne gold. <\/p>\n

According to Siren\u2019s resource update for its Reefton project on September 17, the project’s deposits host a combined inferred JORC compliant mineral resource of 483,000 ounces of gold from ore grading 3.86 grams per tonne gold, as well as 14,500 tonnes of antimony at a grade of 1.7 percent.<\/p>\n<\/p>\n

Rua will also be positioned as the preeminent gold explorer in New Zealand, with a market capitalisation of approximately AU$41.9 million.<\/p>\n

In exchange for Reefton Resources, Rua will pay Siren AU$18 million in shares and a further AU$4 million cash. The cash payments include: forgiving an AU$1 million promissory note upon signing the agreement, an AU$1 million cash payment at completion and the issue of 10,000,000 Siren shares to Rua (or its nominee) at AU$0.20 per share around the completion date.<\/p>\n

Once the sale is complete, Siren will have a 26.1 percent stake in Rua, and Rua will hold a 7.51 percent stake in Siren. Rua will also transfer the Langdons antimony-gold project back to Siren.<\/p>\n

\u201cSince we listed Siren on the ASX in 2020, the vision has been to consolidate the historical Reefton belt to give it the best chance of bringing the multiple high-grade projects into a central processing hub model,\u201d Siren Managing Director and CEO Victor Rajasooriar said.<\/p>\n

Following this transaction, Siren will concentrate on the Sams Creek gold project and the Langdons and Queen Charlotte antimony-gold projects.<\/p>\n

For its part, Rua will focus on the exploration and development of the combined Reefton belt. The company completed a C$8 million capital raising in July.<\/p>\n

Siren first publicised this transaction on July 15, and the deal was approved by its shareholders on October 28.<\/p>\n

Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n

This post appeared first on investingnews.com<\/div>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Siren Gold (ASX:SNG) announced on Tuesday (November 26) that it has completed the sale of…<\/p>\n","protected":false},"author":1,"featured_media":10698,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[],"class_list":["post-10697","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/posts\/10697","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/comments?post=10697"}],"version-history":[{"count":0,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/posts\/10697\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/media\/10698"}],"wp:attachment":[{"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/media?parent=10697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/categories?post=10697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/tags?post=10697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}