Perth based company Buka Gold has taken another step towards consolidation of its landholding in the Midwest region of Western Australia with confirmation the Perth based company had reached an agreement to acquire private company Mooloogool.
Buka acquired Mooloogool, the holder of iron and manganese rights to 2,023 square kilometre tenement application package in the region, from a private consortium giving the company interests in over 3,000 square kilometres of land prospective for iron ore and other minerals in Midwest Western Australia.
Under the terms of the transaction Buka will issue the private consortium 20,462,948 ordinary shares to acquire Mooloogool progressively and proportionately upon the grant of the tenements, representing, in total, approximately 19.99% of the issued capital in the Company post transaction. In addition, Buka will also issue the consortium 12.5 million options that can be converted on or before December 31st 2012 for AUD 0.12 per share.
The rights to iron and manganese on tenement applications held by Mooloogool are adjacent to Buka’s tenements in the Peak Hill region, located approximately 100 kilometres north northeast of the township of Meekatharra in the Murchison region of Western Australia.
Mr Tony Sage company chairman said that the acquisition complemented the Buka's other assets including Mt Elvire iron project in WA, where exploration is due to commence in coming months.
Mr Sage said that “The deal with Mooloogool Limited allows Buka to consolidate and expand its regional exploration potential within this exciting region. We will be focussing on consolidating our iron ore land holding in the region and to this end have commenced discussions with a range of parties. Iron ore development is about having the necessary scale to justify infrastructure investment and as a company we believe Buka is well positioned to lead this activity.”
The Peak Hill tenements, acquired as part of a transaction between Buka and Cauldron Energy in 2009, are held in JV between Buka and London based Eagle Gold Limited.
The JV area includes 1,000 square kilometres of minerals leases and applications and is known to contain several exciting exploration targets, including the Forrest Gimp gold discovery, only 12 kilometres from the Fortnum treatment plant.
Buka proposes, subject to shareholder approval, to undertake a Placement to sophisticated investors at AUD 0.12c per share to raise AUD 1.4 million. The company plans to use the funds raised via the Placement on aggressive exploration activities across its Midwest and other assets.
