Siren Gold Retains 26% Stake in RUA After A$22M Reefton Sale
Siren Gold Limited has completed the sale of its Reefton Project for A$22 million, retaining a significant stake in the new consolidated explorer RUA Gold Inc. The company now turns its focus to advancing the Sams Creek Project with a pending mining permit and exploration plans.
- Sale of Reefton Project to RUA Gold Inc. for A$22 million
- Siren retains 26.1% equity in RUA, maintaining exposure to Reefton and Glamorgan projects
- Focus shifts to Sams Creek Project with 824koz gold resource and upcoming mining permit application
- Langdon's Antimony-Gold tenement to transfer to Siren post-sale completion
- CEO Victor Rajasooriar resigns, with transition period extending to mid-2025
A Transformative Transaction
In a decisive move to consolidate its portfolio and sharpen its strategic focus, Siren Gold Limited (ASX: SNG) has completed the sale of its wholly owned subsidiary Reefton Resources Pty Ltd, which holds the Reefton Project, to Canadian-listed RUA Gold Inc. for A$22 million. The deal, finalized in late 2024, included a mix of cash, Siren shares, and RUA equity, positioning RUA as the dominant gold explorer in New Zealand’s Reefton Goldfields.
Significantly, Siren retains a 26.1% stake in RUA, preserving exposure to the high-grade Reefton and Glamorgan projects while eliminating the need for near-term dilutive equity financing. This strategic partnership allows Siren to benefit from RUA’s expanded tenement package and funding, which now covers approximately 1,196 square kilometres of historically prolific goldfields.
Refocusing on Sams Creek and Antimony Assets
With the Reefton Project divested, Siren’s attention pivots to its Sams Creek Project in New Zealand’s Golden Bay region. The project boasts a robust Mineral Resource Estimate (MRE) of 824,000 ounces of gold at 2.8 grams per tonne, supported by a substantial porphyry dyke system open at depth and along strike. A mining study is underway, aimed at securing a mining permit application in the current quarter, signaling Siren’s intent to advance Sams Creek towards production.
Complementing this is the anticipated transfer of the Langdon's Antimony-Gold tenement from RUA to Siren, a project with historical high-grade gold and antimony mineralisation. Siren is also pursuing exploration at the Queen Charlotte Project, home to the historic Endeavour Inlet antimony mine, which produced over 3,000 tonnes of stibnite in the late 19th century. Both projects offer exposure to antimony, a critical mineral with increasing geopolitical importance and strong market fundamentals amid tightening supply.
Leadership Transition Amid Strategic Shift
Adding a layer of complexity to this period of transformation, Siren’s Managing Director and CEO, Victor Rajasooriar, resigned effective 31 December 2024, though he is expected to remain in his role until June 2025 to ensure a smooth transition. His departure coincides with the company’s strategic realignment and will be closely watched by investors for any shifts in operational momentum or corporate direction.
Financial Position and Outlook
At the end of the December quarter, Siren held a healthy cash balance of A$3.2 million, bolstered by proceeds from the Reefton sale. Exploration expenditure remained disciplined at A$226,000 for the quarter, reflecting a focused approach as the company prepares for upcoming drilling campaigns and permit applications. The planned deep drilling program at Sams Creek, set to commence in early February, aims to test promising deeper mineralisation targets that could materially increase the project’s resource base.
Overall, Siren’s repositioning through the Reefton divestment and renewed focus on Sams Creek and antimony assets marks a significant evolution in its growth strategy, balancing near-term development opportunities with longer-term exposure to a consolidated New Zealand gold exploration landscape.
Bottom Line?
Siren Gold’s recalibrated portfolio and leadership changes set the stage for a pivotal year focused on unlocking value at Sams Creek and critical mineral projects.
Questions in the middle?
- How will Siren’s CEO transition impact the execution of its Sams Creek development plans?
- What exploration results can investors expect from the upcoming deep drilling at Sams Creek?
- How quickly will the Langdon’s tenement transfer from RUA to Siren be completed, and what potential does it hold?