Gateway Mining has completed its $45 million acquisition of the Yandal Gold Project from Strickland Metals, adding a significant 400,400-ounce gold resource to its portfolio. The company plans to advance mining licence applications and exploration activities in Western Australia's underexplored Yandal Greenstone Belt.
- Acquisition of Yandal Gold Project with 400,400 oz JORC-compliant gold resource
- Consideration paid via $45 million in Gateway shares to Strickland Metals
- Focus on advancing Horse Well mining licence application
- Planned drilling at high-potential Dusk 'til Dawn target in late 2025 or early 2026
- Yandal Project complements Gateway’s existing Sandstone gold assets
Gateway’s Strategic Expansion in Western Australia
Gateway Mining Limited has officially completed its acquisition of the Yandal Gold Project from Strickland Metals Ltd, marking a pivotal moment for the company’s growth strategy in the gold exploration sector. The $45 million transaction, settled entirely in Gateway shares, brings a substantial JORC 2012 Inferred Resource of 400,400 ounces of gold into Gateway’s portfolio, located in the prolific Yandal Greenstone Belt of Western Australia.
Executive Chairman Peter Langworthy highlighted the significance of this acquisition, describing Yandal as a “cornerstone asset” that enhances Gateway’s existing Sandstone projects. The combined portfolio positions Gateway as a notable player in a region that remains relatively underexplored despite its rich geological potential.
Unlocking the Potential of the Yandal Gold Project
The Yandal Gold Project spans 1,780 square kilometres along the eastern flank of the Yandal Greenstone Belt, an area where modern exploration techniques have only scratched the surface. The project’s current resource estimate is based on an inferred mineral resource of 8.17 million tonnes grading 1.52 grams per tonne gold, translating to over 400,000 ounces of gold.
Gateway’s immediate focus is to advance the mining licence application for the Horse Well resource, which alone accounts for approximately 291,500 ounces of gold. This application builds on groundwork initiated by Strickland Metals and includes exploring toll treatment options within the region, potentially accelerating production timelines.
Exploration Plans and Future Targets
Beyond Horse Well, Gateway is gearing up for exploration activities at the Dusk ‘til Dawn target, a high-priority area characterized by geochemical anomalies and propylitic alteration indicative of significant gold mineralisation. Scheduled drilling is planned for late 2025 or early 2026, aiming to test these compelling targets that have so far only been explored with shallow, wide-spaced drilling.
The company’s exploration strategy includes detailed geological mapping, sampling, and close-spaced angled aircore drilling to build a comprehensive geological model and expand the existing resource base. Gateway’s approach reflects confidence in the underexplored nature of the Yandal Greenstone Belt and the potential for resource growth.
Transaction Structure and Shareholder Impact
The acquisition was structured through the issuance of 1.5 billion convertible preference shares to Strickland Metals, which will convert into ordinary shares following an in-specie distribution to Strickland’s shareholders. This distribution, expected to complete by late August 2025, will see approximately 80% of the consideration shares distributed to existing Strickland shareholders, effectively broadening Gateway’s shareholder base.
Post-acquisition, Strickland will retain a significant minority stake, aligning interests as Gateway advances its development and exploration plans. The transaction satisfies all conditions, positioning Gateway to capitalize on the strategic value of the Yandal Gold Project.
Bottom Line?
Gateway’s acquisition sets the stage for a transformative phase in its gold exploration journey, with upcoming drilling and licence progress poised to define its next growth chapter.
Questions in the middle?
- How quickly can Gateway secure the mining licence for Horse Well and what are the regulatory hurdles?
- What will the initial drilling results at Dusk ‘til Dawn reveal about the potential to expand the resource?
- How will the in-specie distribution and share conversion impact Gateway’s share price and shareholder dynamics?