Gateway Mining Limited has agreed to acquire Strickland Metals’ Yandal Gold Project for $45 million in shares, adding a 400,400-ounce inferred gold resource to its portfolio. The deal, pending shareholder approvals, sets the stage for accelerated exploration and development in Western Australia’s prolific goldfields.
- Binding agreement to acquire Yandal Gold Project for $45 million in Gateway shares
- Yandal Project hosts 400,400 ounces of JORC 2012 inferred gold resource
- Focus on progressing Mining Licence application and drilling at Dusk ‘til Dawn
- Acquisition includes Strickland’s Iroquois Project, prospective for zinc-lead
- Transaction subject to shareholder approvals and expected to complete by August 2025
Strategic Acquisition Expands Gateway’s Gold Footprint
Gateway Mining Limited (ASX – GML) has taken a significant step forward by entering into a binding agreement to acquire the Yandal Gold Project from Strickland Metals Limited (ASX – STK). Valued at $45 million in Gateway shares, this acquisition brings a substantial inferred gold resource of over 400,000 ounces into Gateway’s portfolio, reinforcing its position in the highly prospective West Australian goldfields.
The Yandal Gold Project, located on the eastern flank of the Yandal Greenstone Belt within the Yilgarn Craton, is a well-established gold system with a JORC 2012 Inferred Resource of 8.17 million tonnes at 1.52 grams per tonne gold. This resource base provides Gateway with a robust platform to pursue multiple development and exploration opportunities alongside its existing Montague and Barrelmaker projects at Sandstone.
Advancing Mining Licence and Exploration Plans
Gateway’s immediate priority is to advance the Mining Licence application for the Horse Well Gold Camp, which contains a significant portion of the resource. Strickland Metals had already initiated this process, and Gateway intends to expedite environmental and Native Title surveys to facilitate approval. Securing this licence is critical to unlocking the project’s value and enabling future mining operations.
Exploration will also focus on the Dusk ‘til Dawn prospect, where an inferred resource of approximately 109,000 ounces has been defined. The area shows strong signs of intrusion-related gold mineralisation, with compelling geochemical and geophysical targets identified. Gateway plans to commence a maiden drilling campaign at Dusk ‘til Dawn in late 2025 or early 2026, aiming to test these targets and expand the resource inventory.
Broader Portfolio and Financial Position
In addition to the Yandal Gold Project, the acquisition includes Strickland’s Iroquois Project, located north of Yandal and prospective for zinc-lead mineralisation in the emerging Earaheedy Basin. This diversification adds a new dimension to Gateway’s exploration portfolio.
Gateway remains well capitalised to support its exploration and development plans, holding approximately $13.6 million in cash and liquid ASX-listed securities as of the March quarter. The $45 million consideration will be paid through the issue of 1.5 billion convertible preference shares to Strickland, with 80% of these shares to be distributed to Strickland’s existing shareholders via an in-specie distribution.
Governance and Next Steps
The transaction is subject to approvals from both Gateway and Strickland shareholders, as well as other customary conditions including third-party consents. Gateway’s board has managed potential conflicts of interest transparently, with key directors abstaining from related votes. Completion is anticipated by the second half of August 2025, after which Gateway will focus on advancing the project towards production.
This acquisition marks a pivotal moment for Gateway Mining, positioning it to leverage the underexplored potential of the Yandal Greenstone Belt and deliver value to shareholders through disciplined exploration and development.
Bottom Line?
Gateway’s acquisition of Yandal sets the stage for a transformative exploration and development phase in Western Australia’s goldfields.
Questions in the middle?
- Will Gateway secure the Mining Licence for Horse Well within the expected timeframe?
- How will the convertible preference shares impact Gateway’s capital structure and shareholder dilution?
- What are the prospects for expanding the resource beyond the current 400,400 ounces through upcoming drilling?