Metal Bank eyes enlarged WA gold portfolio

Sydney-based Metal Bank is advancing its WA-focused gold strategy, with a new acquisition and a scoping study for two of its existing deposits.

The company has agreed to buy the gold assets of Hastings Technology Metals, including the Whiteheads project near Kalgoorlie. The non-binding agreement will see $2.3 million of Metal Bank shares used as consideration.

A deferred consideration of $800,000 to the vendors of Whiteheads remains payable by Hastings, which took on the Whiteheads project in August, over the next five years, subject to defined resource milestones being achieved.

The acquisition remains subject to binding documentation and shareholder approval, among other conditions.

Metal Bank has also commenced a scoping study at its Livingstone project near Meekatharra in the mid-west region of WA. The study will focus on the Kingsley and Homestead deposits, with the aim of fast-tracking them toward production.

Metal Bank chair Ines Scotland said the two projects will be linked together as part of Metal Bank’s WA-focused gold strategy.

“Adding the Hastings gold assets plus experienced management to Metal Bank provides [it] with scale for future gold production,” he said.

“The Hastings acquisition furthers our strategy of building a gold portfolio in WA with assets that have the potential for near-term production utilising nearby third-party processing infrastructure, as well as significant exploration upside.”