Majestic North Acquisition Tests Orbminco’s Growth Strategy Amid Pending Assays
Orbminco Limited has executed a binding agreement to acquire the Majestic North Gold Project in Western Australia and commenced maiden drilling, marking a significant step in its growth strategy.
- Binding agreement to acquire 100% of Majestic North Gold Project
- Maiden 3,000m aircore drilling program underway with assays due August
- Geophysical surveys completed at Bronze Fox Project in Mongolia
- Divestment of 80% interest in Mt Venn Project near completion
- Raised $1.005 million through share placements during the quarter
Strategic Acquisition in Eastern Goldfields
Orbminco Limited (ASX, OB1) has taken a decisive step forward by entering a binding agreement to acquire 100% ownership of the Majestic North Gold Project, located approximately 65 kilometres east of Kalgoorlie in Western Australia's prolific Eastern Goldfields region. This acquisition positions Orbminco to tap into a shallow, supergene gold resource with promising near-term mining potential, while also offering upside through deeper primary gold mineralisation.
The project is strategically situated near existing infrastructure and processing mills, and lies just 2 kilometres north along the same geological trend as Black Cat Syndicate's Majestic-Imperial Project, which boasts a substantial ~500,000-ounce gold resource. Orbminco’s acquisition terms include a $1 million cash payment, $2.4 million in shares, and a production royalty, underscoring the company's commitment to expanding its portfolio in Tier-1 mining jurisdictions.
Exploration Momentum Builds
Following the acquisition agreement, Orbminco commenced a maiden aircore drilling program at Majestic North, targeting 3,000 metres designed to validate historical results. Assay results are anticipated by the end of August, which will be pivotal in confirming the project's resource potential and guiding future development plans.
Meanwhile, in Mongolia, Orbminco completed extensive geophysical surveys at its Bronze Fox Copper-Gold Project, including induced polarization and gravity measurements across key prospects. These surveys aim to refine target zones ahead of potential drilling, with results currently under evaluation.
Portfolio Optimization and Financial Position
Orbminco also progressed the divestment of its 80% interest in the Mt Venn Project in Western Australia, with the sale to Sarama Resources Ltd nearing completion. This divestment is expected to provide the company with 12 million Sarama CHESS Depositary Interests, valued at approximately AUD 396,000, enhancing liquidity and enabling a sharper focus on core assets.
During the quarter, Orbminco raised over $1 million through share placements to professional and sophisticated investors, bolstering its cash position to $869,000 at quarter-end. Exploration expenditure totaled $277,000, reflecting disciplined capital deployment as the company advances its projects.
Looking Ahead
Orbminco’s recent activities underscore a clear strategic intent to build a high-quality, diversified portfolio of mineral assets in established mining regions. The upcoming assay results from Majestic North will be closely watched by investors, as they hold the key to unlocking value and informing the next phase of exploration and development.
Bottom Line?
With maiden drilling underway and key divestments closing, Orbminco’s next moves will be critical in defining its growth trajectory.
Questions in the middle?
- What will the maiden drilling assays at Majestic North reveal about the project's resource potential?
- How will the results from the Bronze Fox geophysical surveys influence Orbminco’s exploration plans in Mongolia?
- What are the final conditions pending for the Mt Venn divestment, and how will the proceeds be allocated?
