Cosmo Metals will acquire 100 per cent of La Zarza Minerals, the owner of the Kanowna gold project (KGP) in Western Australia.
Cosmo Metals plans to commence on-ground exploration at the KGP immediately, with air-core drilling planned following completion of the capital raising.
“The execution of the option to acquire the KGP is an exciting opportunity for Cosmo Metals’ shareholders,” Cosmo managing director James Merrillees said.
“The acquisition of the KGP complements the company’s existing base metals and lithium portfolio at Yamarna and is a low-cost entry into the prolific Eastern Goldfields adjacent to world-class projects with exceptional infrastructure.
“With the help of our corporate advisors, we are in the process of securing the support of existing and incoming shareholders for a capital raising to complete the acquisition and fund drilling and exploration programs at the KGP.”
The KGP is located about 1km west of Northern Star Resources’ Kanowna Belle operations, a mine that has produced over 5.4 million ounces of gold since 1993 and is currently producing approximately 150,000 ounces of gold annually.
Cosmo is looking to raise approximately $2.1 million via a single tranche placement to fund completion of the acquisition and exploration.
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