Strickland Metals Sells Yandal Project for $45M, Eyes Serbian Gold Growth

Strategic 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 deal, valued at A$45 million in Gateway equity, crystallises significant value from Strickland’s Australian assets and sets the stage for a renewed focus on its flagship Rogozna Project in Serbia.

The Yandal Project, which holds an inferred mineral resource of approximately 400,400 ounces of gold, will transfer to Gateway Mining, a company that already has a strong presence in the region. This transaction not only provides immediate value to Strickland but also allows Gateway to consolidate its holdings in the prolific Yandal greenstone belt.

Shareholder Benefits and Equity Distribution

Following completion and subject to shareholder approvals, Strickland plans to distribute around 80% of its Gateway shares to its shareholders through an in-specie capital return and dividend. This means that for every 100 Strickland shares held, shareholders can expect to receive approximately 53 Gateway shares, effectively maintaining their exposure to the Yandal Project’s future exploration upside while benefiting from the immediate value crystallised by the sale.

Strickland will retain a 15.7% stake in Gateway post-transaction, ensuring it remains a significant shareholder in the combined entity. The Gateway shares will convert from convertible preference shares to fully paid ordinary shares shortly after the distribution, enhancing liquidity for recipients.

Refocusing on Rogozna – A Major Growth Opportunity

With the Yandal asset sale underway, Strickland is now fully focused on advancing its Rogozna Project in Serbia, which boasts a substantial 7.4 million ounce gold equivalent resource. Managing Director Paul L’Herpiniere emphasised the strategic importance of this pivot, highlighting the company’s intent to aggressively explore and expand the Rogozna resource base.

The Rogozna Project combines gold with base metals such as copper, silver, lead, and zinc, offering diversified exposure and potential for significant value creation. This shift aligns with Strickland’s ambition to evolve into a serious emerging gold and base metals company, leveraging the scale and quality of Rogozna’s resource.

Conditions and Next Steps

The transaction is subject to several conditions, including Gateway and Strickland shareholder approvals, third-party consents, and the absence of any material adverse events. The companies are working towards satisfying these conditions within 90 days of the agreement’s execution.

Strickland is preparing to convene an Extraordinary Meeting to seek shareholder approval for the in-specie distribution. The company has engaged Longreach Capital as corporate advisor and Hamilton Locke as legal advisor to navigate the transaction process.

Maintaining Exposure While Unlocking Value

Importantly, this deal allows Strickland shareholders to maintain direct exposure to the Yandal Gold Project’s future exploration potential through their Gateway shareholding, while also benefiting from the immediate value realisation. Gateway Mining’s strong cash position, with approximately $13.6 million in cash and liquids as of March 2025, further supports the ongoing development of the Yandal assets.

As the transaction progresses, market participants will be watching closely for the shareholder meeting outcomes and subsequent exploration updates from both Strickland and Gateway.