Leeuwin Metals’ Marda Acquisition Hinges on Resource Milestones and Shareholder Approval
Leeuwin Metals has inked a binding deal to acquire the Marda Gold Project from Ramelius Resources, marking a strategic expansion into Western Australia's prolific goldfields. Alongside promising iron ore results from its West Pilbara project, Leeuwin is positioning itself as a diversified explorer with significant growth potential.
- Binding agreement to acquire 100% of Marda Gold Project from Ramelius Resources
- Upfront $500,000 payment in shares plus milestone payments tied to JORC resource definitions
- Marda Project covers over 500 km² with multiple existing pits and strong exploration targets
- West Pilbara Iron Ore Project shows expanded mineralisation with iron grades over 54% Fe
- Cash position of $1.2 million supports ongoing exploration and development activities
Strategic Acquisition in Western Australia's Goldfields
Leeuwin Metals Ltd (ASX: LM1) has taken a decisive step to broaden its exploration footprint by entering into a binding agreement to acquire the Marda Gold Project from Ramelius Resources Limited. This acquisition, announced in the December 2024 quarterly report, is set to complete in the first quarter of 2025, subject to shareholder approval and customary conditions.
The Marda Gold Project, spanning over 500 square kilometres in the Marda-Diemals greenstone belt, is a well-established asset featuring granted mining, exploration, and prospecting leases. Its location approximately 400 kilometres northeast of Perth situates it within a prolific gold-producing region, supported by existing infrastructure such as haul roads linking multiple deposits.
Exploration Potential and Milestone-Linked Payments
Leeuwin's acquisition terms are structured to balance immediate investment with long-term upside. The upfront consideration involves $500,000 paid in Leeuwin shares, with additional milestone payments of $500,000 and $1 million contingent on defining JORC-compliant gold resources of 500,000 ounces and 1 million ounces respectively. This aligns financial outlays with project success, minimizing upfront capital strain while incentivizing resource growth.
The project boasts multiple high-grade intercepts from historical drilling, including standout results such as 5 metres at 8.23 g/t Au at Cobra and 14 metres at 4.03 g/t Au at Dugite pits. Leeuwin plans an aggressive exploration program targeting extensions of mineralisation in key areas like Marda Central, Evanston Trend, Golden Orb Trend, and Marda North, where mineralisation remains open and underexplored.
Complementary Iron Ore Prospects in West Pilbara
Alongside the gold acquisition, Leeuwin continues to advance its West Pilbara Iron Ore Project. Recent fieldwork has expanded the mineralised footprint to a 2.4-kilometre strike length, with rock chip samples returning iron grades exceeding 54% Fe. The project’s proximity to Rio Tinto’s Mesa A mine and access to major transport infrastructure enhances its strategic value.
These encouraging early-stage results reinforce the project's potential as a Channel Iron Deposit (CID) target, positioning Leeuwin to capitalize on Western Australia's robust iron ore sector alongside its gold ambitions.
Financial Position and Outlook
Leeuwin reported a cash balance of $1.2 million at the end of December 2024, providing a solid foundation for its planned exploration activities. The company’s disciplined capital management is evident in its milestone-based acquisition payments and ongoing expenditure focused on advancing key projects.
Executive Chairman Christopher Piggott highlighted the transformative nature of the Marda acquisition, emphasizing its role in diversifying Leeuwin’s portfolio and unlocking value in tier-1 mining jurisdictions. The company is poised to commence follow-up drilling immediately upon completion, aiming to rapidly define resources and enhance shareholder value.
Bottom Line?
Leeuwin Metals’ acquisition of Marda and promising iron ore results set the stage for a pivotal year of exploration and resource definition.
Questions in the middle?
- Will Leeuwin secure shareholder approval smoothly to complete the Marda acquisition?
- How quickly can Leeuwin define JORC-compliant resources to trigger milestone payments?
- What are the next steps and timelines for drilling at both Marda and West Pilbara projects?
