Corazon Mining has secured a transformative deal to acquire the Two Pools Gold Project in Western Australia, backed by a A$2 million capital raise and the appointment of Simon Coyle as Managing Director.
- Binding agreement to acquire Two Pools Gold Project in WA's Plutonic Greenstone belt
- Historic drilling reveals high-grade gold intercepts including 34.25g/t over 3m
- A$2 million placement secured from sophisticated investors, pending shareholder approval
- Appointment of Simon Coyle as Managing Director with 20+ years mining experience
- Acquisition includes performance rights and 1% net smelter royalty to vendor
Strategic Acquisition in a Historically Underexplored Belt
Corazon Mining Limited (ASX, CZN) has taken a significant step forward by entering into a binding Heads of Agreement to acquire the Two Pools Gold Project, situated in the Plutonic Greenstone belt of Western Australia. This region is renowned for its gold endowment, hosting deposits like the Plutonic Gold Mine, which has produced over six million ounces since 1990. The Two Pools Project covers a substantial 193 square kilometres, including a newly identified 20-kilometre strike of greenstone that was previously misclassified as granite, opening a fresh frontier for exploration.
Compelling Historic Drill Results Highlight Potential
Historic drilling by Great Central Mines and more recent work by AIC Resources has revealed multiple high-grade gold intersections, including standout intercepts such as 12 metres at 8.89 grams per tonne gold, with a 3-metre section grading 34.25 grams per tonne. Notably, mineralisation extends beneath overthrust granite units, suggesting the potential for concealed, high-grade shoots akin to the nearby Trident deposit. Soil sampling further supports a broad mineralised zone extending beyond known outcrops, with assays up to 1.8 grams per tonne gold.
Capital Raising and Leadership to Accelerate Exploration
To fund the next phase of exploration and general working capital, Corazon has secured firm commitments for a A$2 million placement to sophisticated and institutional investors, priced at a 25% discount to recent trading levels. This capital raise is subject to shareholder approval at a general meeting anticipated in late September 2025. Complementing this strategic acquisition and funding, Corazon has appointed Simon Coyle as Managing Director. Mr Coyle brings over two decades of executive experience in mining operations, including leadership roles at Pilbara Minerals and Velox Energy Materials, positioning him well to drive the company’s exploration ambitions.
Deal Structure and Incentives Align Interests
The acquisition terms include an initial share issue to the vendor, Mining Equities Pty Ltd, alongside performance rights that vest upon key milestones such as the granting of exploration licences and the reporting of significant drilling intercepts exceeding 50 grams per metre gold equivalent. Additionally, a 1% net smelter royalty is payable on minerals extracted from the project area. These arrangements align vendor and company interests towards advancing the project’s value.
Unlocking a New Gold Province
Corazon’s Non-Executive Chair Kristie Young described the acquisition as transformative, highlighting the rare opportunity to secure a large, prospective landholding in a historically underexplored greenstone belt. The combination of a strategic asset, fresh capital, and strengthened leadership provides a clear pathway to unlock significant value. With exploration programs poised to commence rapidly upon acquisition completion, the market will be watching closely for drilling results that could redefine the company’s growth trajectory.
Bottom Line?
Corazon’s bold move into the Two Pools Gold Project sets the stage for a potentially game-changing exploration campaign in a new WA gold belt.
Questions in the middle?
- Will Corazon’s upcoming drilling confirm the presence of high-grade mineralisation beneath granite cover?
- How will the market respond to the dilution from the A$2 million placement and performance rights issuance?
- Can Simon Coyle’s operational expertise accelerate the transition from exploration to resource definition?