Magmatic Resources has completed the first stage of acquiring the Weebo Gold Project in Western Australia, securing key exploration licenses and gearing up for immediate drilling programs.
- Stage 1 acquisition of Weebo Gold Project completed with 5 exploration and 1 prospecting license
- Issued 19.6 million ordinary shares and 9.8 million performance shares to vendors under escrow
- Project covers 136 km² in the prolific Yandal Greenstone Belt near major gold mines
- Stage 2 acquisition pending renewal of 3 additional exploration licenses
- Exploration team preparing for Air Core drilling and advanced RC and diamond drilling
Strategic Acquisition in WA’s Goldfields
Magmatic Resources Limited (ASX, MAG) has marked a significant milestone by completing Stage 1 of its acquisition of the Weebo Gold Project, located in the heart of Western Australia’s prolific goldfields. This initial phase secures five exploration licenses and one prospecting license, covering a substantial 136 square kilometres of tenure within the highly prospective southern Yandal Greenstone Belt.
The Weebo Project’s location is particularly strategic, situated just 30 kilometres southeast of Leinster and surrounded by five established gold mines operated by industry heavyweights such as Northern Star Resources, Gold Fields, and Bellevue Gold. This proximity underscores the project’s potential to host significant gold mineralisation.
Considerable Share Issuance and Vendor Alignment
To complete Stage 1, Magmatic issued 19.6 million fully paid ordinary shares and 9.8 million performance shares to the vendors, all subject to a 12-month voluntary escrow period. Additionally, 5.6 million shares were issued to the shareholders of Northern Goldfields Resources Pty Ltd, the entity from which Magmatic is acquiring the project. These share issuances represent 70% of the total agreed compensation, reflecting the company’s commitment to aligning vendor interests with its future exploration success.
Stage 2 of the acquisition, which includes three further exploration licenses, remains contingent upon the successful renewal of those licenses. This introduces an element of uncertainty, but also potential upside if the full portfolio is secured.
Exploration Plans and Forward Momentum
Magmatic’s Western Australian exploration team has already been active on site, conducting mapping, sampling, and detailed planning. The company is poised to commence an Air Core drilling program immediately upon regulatory approval, aiming to refine and define high-priority targets. Furthermore, preparations are underway for more advanced Reverse Circulation (RC) and diamond drilling campaigns on the project’s most promising prospects.
Managing Director David Richardson expressed enthusiasm about the acquisition, highlighting the team’s readiness and the exciting exploration activities planned for the second half of 2025. This acquisition complements Magmatic’s existing portfolio, which is predominantly focused on gold and copper projects in New South Wales, positioning the company for diversified growth across two prolific Australian mining regions.
Context Within Magmatic’s Broader Strategy
The Weebo acquisition represents a strategic expansion beyond Magmatic’s core East Lachlan projects in New South Wales, an area known for its substantial gold and copper endowment. By entering the Western Australian goldfields, Magmatic taps into one of the world’s most renowned gold belts, potentially accelerating its growth trajectory. The company’s methodical approach to acquisition and exploration underscores a disciplined strategy aimed at unlocking value through targeted drilling and resource definition.
Bottom Line?
Magmatic’s Weebo acquisition sets the stage for a pivotal exploration campaign that could redefine its growth prospects in WA’s goldfields.
Questions in the middle?
- Will Stage 2 licenses be successfully renewed to complete the full Weebo acquisition?
- What early drilling results will reveal about the gold potential of the Weebo Project?
- How will Magmatic balance exploration efforts between its NSW and WA projects moving forward?