Strickland Metals Seals $45M Yandal Sale, Eyes Serbia’s Rogozna Growth

Strategic Asset Sale Unlocks Value

Strickland Metals Limited (ASX – STK) has taken a decisive step in reshaping its portfolio by entering into a binding agreement to sell its Yandal Gold Project in Western Australia to Gateway Mining Limited (ASX – GML). The transaction, valued at A$45 million payable entirely in Gateway equity, crystallises significant value for Strickland shareholders while allowing the company to sharpen its focus on the Rogozna Project in Serbia.

The Yandal Project, boasting an inferred mineral resource of approximately 400,400 ounces of gold, has been a key Australian asset for Strickland. However, the sale reflects a strategic pivot towards the company’s flagship Rogozna Project, which holds a substantial 7.4 million ounce gold equivalent resource, positioning Strickland as a serious emerging gold and base metals company.

Shareholder Value and Exposure Maintained

Following completion and subject to shareholder approvals, Strickland plans to distribute around 80% of its Gateway shares to its shareholders via a combination of an in-specie capital return and dividend. This distribution will see shareholders receive approximately 53 Gateway shares for every 100 Strickland shares held, effectively passing on direct exposure to the Yandal Project’s future exploration potential.

Strickland will retain a 15.7% stake in Gateway post-transaction, ensuring ongoing participation in the upside of the Yandal assets now under Gateway’s stewardship. Gateway itself enters the deal with a strong cash position of approximately $13.6 million, bolstering its capacity to advance the Yandal tenements.

Conditions and Governance

The transaction is subject to several conditions, including approvals from both companies’ shareholders, third-party consents, and the absence of any material adverse events affecting Gateway or the tax consequences for shareholders. Notably, certain directors with dual roles in both companies have recused themselves from voting on related resolutions to manage conflicts of interest.

Completion of the sale will also see the transfer of joint venture obligations and private royalties associated with the Yandal tenements to Gateway, ensuring continuity in operational responsibilities.

Looking Ahead – Rogozna in the Spotlight

With the Yandal Project sale underway, Strickland’s management is now fully committed to accelerating exploration and resource growth at Rogozna. The Serbian project’s recent resource upgrades underscore its potential as a cornerstone asset. The company’s Managing Director, Paul L’Herpiniere, emphasised the excitement around unlocking Rogozna’s full value, signalling a new chapter focused on aggressive development and value creation.

Investors will be watching closely as Strickland convenes an extraordinary meeting to approve the in-specie distribution and as Gateway integrates the Yandal assets into its portfolio. The unfolding developments will be critical in defining the trajectory of both companies in the competitive gold mining landscape.