Sabre Resources Limited (ASX: SBR) has completed the acquisition of Power Metals Pty Ltd, the holder of a 100% interest in the Bonanza Gold Project (EL 57/1125) in the Youanmi Gold Mining District, in Western Australia.
The acquisition was settled via Sabre issuing a total of 6,000,000 fully paid ordinary shares and 50,000,000 options with exercise prices of $0.008 and expiring September 30, 2022, to the vendors of Power Metals Pty Ltd.
In a statement to the ASX, the Sabre Board said:
We consider the acquisition of Power Metals and the Bonanza Gold Project as an excellent opportunity for Sabre to commence exploration in areas which are host to several exciting high-grade gold discoveries, including the recently discovered northern extension of the Penny West Gold Project, owned by Spectrum Metals Limited (ASX: SPX).
“This region has gained rapid investor attention with several companies reporting significant exploration success on their gold projects located in the same area. Through this acquisition, Sabre is now able to have exposure to this rapidly expanding gold district.”
The Bonanza Gold Project covers an area of 18 sq.km and is located adjacent to the Penny West Gold Project, where Spectrum Metals Limited (ASX: SPX) has reported a new high-grade gold discovery at Penny West North.
The Youanmi Gold Mining District has gained rapid investor attention with several companies including Rox Resources Limited (ASX: RXL) and Venus Metals Corporation Limited (ASX: VMC) reporting significant exploration success on its gold projects located in the same area.
Sabre has now engaged a geophysical contractor to undertake a detailed aeromagnetic survey on the tenement. The magnetic survey will be conducted over an area of 2km by 3km in the northeast corner of EL57/1125 with a line spacing of 20m for a total of 300 line kilometres.
The survey has been scheduled to commence in late January 2020.