Labyrinth Resources terminated its sale and purchase agreement with Gold Projects WA for the Labyrinth Gold Project in Canada due to the latter's failure to meet obligations.

Effective May 17, the termination sees Labyrinth retaining a non-refundable deposit of $255,000.

The Labyrinth Gold Project in Quebec boasts a JORC mineral resource of 500,000oz at 5g/t and sits within the Abitibi Greenstone Belt near multi-million-ounce deposits.

The termination prompts a strategic reassessment by Labyrinth, aligning with current favourable gold market conditions.

The company plans to update the market with its revised strategic plan.