WIN Metals has agreed to acquire the Palm Springs Gold Project from Meteoric Resources (ASX:MEI).
Located in the Kimberley region of Western Australia, the project will be renamed "Butchers Creek Gold Project" reflecting its historic Butchers Creek Gold mine.
Under the agreement, WIN Metals will acquire the tenements comprising three mining leases, five exploration licences, and three prospecting licences, covering 100km2 that host over 60 known gold occurrences.
The acquisition includes an existing mineral resource estimate of 5.6Mt @ 2.0g/t gold for 357,000oz, with historic production of 52,000oz of gold between 1995 and 1997.
Steve Norregaard, Managing Director and CEO of WIN Metals remarked, "This pivotal acquisition for WIN heralds the end of a challenging period for the company," emphasising the potential of the high-grade gold asset.
In a statement, Andrew Tunks, executive chairman of Meteoric Resources, said, "We are delighted with the sale of the Butchers Creek Gold Project to WIN Metals. This prospective gold asset deserves dedicated attention in the current gold market."
The transaction will total $1 million in cash and $1.8 million in WIN shares, subject to shareholder and regulatory approvals.
WIN Metals plans to commence a capital raising of at least $3 million to fund exploration and development activities at Butchers Creek within the next 75 days.
At the time of reporting, the respective share prices of WIN Metals and Meteoric Resource were $0.038 and $0.10.