Gateway Mining’s $45M Yandal Gold Deal Poised to Reshape Its Growth Trajectory

Gateway Mining’s Strategic Acquisition

Gateway Mining Ltd (ASX – GML) has taken a decisive step to bolster its gold exploration portfolio by entering into a binding agreement to acquire Strickland Metals Limited’s (ASX – STK) Yandal Gold Project in Western Australia. Valued at $45 million payable in Gateway shares, this acquisition marks a transformative chapter for Gateway, significantly increasing its resource base and positioning it for accelerated growth.

The Yandal Gold Project is notable for its substantial JORC 2012 Inferred Resource of 8.17 million tonnes grading 1.52 grams per tonne gold, equating to approximately 400,400 ounces of gold. Beyond the existing resource, Gateway highlights the project’s considerable exploration potential, with large areas of the Yandal Greenstone Belt remaining underexplored by modern techniques.

Unlocking Value Through Mining Licence and Exploration

Gateway plans to prioritize advancing the mining licence application for the Horse Well Gold Camp, which contains a significant portion of the resource (291,500 ounces). This step is critical to unlocking the project’s value and enabling future development. Additionally, the company intends to commence drilling programs targeting the Dusk ‘til Dawn area, where recent geological and geochemical work has identified compelling intrusion-related gold targets.

The acquisition also includes the Iroquois Project, located north of Yandal, which adds further strategic depth to Gateway’s portfolio. The deal involves issuing 1.5 billion convertible preference shares to Strickland, with 80% of these shares to be distributed to Strickland’s existing shareholders, reshaping Gateway’s shareholder structure upon completion.

Ongoing Exploration and Corporate Developments

Alongside the acquisition, Gateway continues to advance its existing projects, including the Barrelmaker Gold Project and Montague Range Project in the Sandstone region of Western Australia. These projects offer additional exploration upside with low holding costs and minimal land access constraints.

Gateway also announced the appointment of David Crook, a seasoned geologist with over 40 years of experience, as a Non-Executive Director. His expertise in gold exploration and base metals is expected to strengthen Gateway’s technical and strategic capabilities as it integrates the Yandal assets.

Financial Position and Next Steps

As of 30 June 2025, Gateway reported cash reserves of $3.768 million and holds a significant equity stake in Brightstar Resources Limited valued at approximately $8.72 million. Exploration expenditure during the quarter was modest, reflecting a focus on strategic acquisitions and preparatory work.

The acquisition remains subject to shareholder approvals from both companies and other regulatory consents, with completion anticipated in the second half of August 2025. Investors will be watching closely for the outcomes of these approvals and the progress of Gateway’s exploration and development programs at Yandal.