Great Boulder Resources acquires transformational Peak Hill Gold Project

Great Boulder Resources (ASX:GBR) has agreed to acquire 100% of Westgold Resources' (ASX:WGX) interest in the Peak Hill Gold Project.

Located just 100km from Great Boulder's existing Side Well Project, Peak Hill is a renowned high-grade production centre boasting past yields exceeding 600,000oz.

The acquisition includes seven granted mining leases and a JORC 2012 mineral resource estimate of 6.4Mt at 1.6g/t Au, representing 481,000oz of gold.

To fund the $25 million cash component of the deal—which also involves a 19.9% shareholding and a 1% NSR royalty interest—Great Boulder is undertaking a $40 million institutional placement at 8.5c per share.

The synergy of the deal is underscored by a new ore purchase agreement, allowing Great Boulder to process ore at Westgold’s regional mills, including Bluebird, Fortnum, and Tuckabianna.

The "capital light" model aims to bring Peak Hill to "mining-ready" status within 12 months of completion.

Furthermore, a non-binding strategic collaboration will explore fast-tracking the 1Moz Side Well Project.

Management has signalled an aggressive growth phase, committing to a 60,000-metre multi-rig drilling campaign over the next six months to expand the known gold endowment.