Risks Loom as Metal Bank Pursues Ambitious WA Gold Expansion Strategy
Metal Bank Limited moves swiftly to expand its Western Australian gold footprint through the acquisition of Hastings Technology Metals’ gold assets and a $2.3 million capital raising aimed at fast-tracking exploration and production.
- Acquisition of Whiteheads, Ark, and Darcy’s gold projects from Hastings Technology Metals
- Transaction valued at $2.3 million paid in MBK shares, pending shareholder approvals
- $2.3 million entitlement offer underway to fund exploration, approvals, and early production
- New CEO Tim Gilbert and Non-executive Director Charles Lew appointed to lead WA gold strategy
- Ongoing scoping studies at Livingstone and Whiteheads projects to accelerate production
Strategic Acquisition to Bolster WA Gold Portfolio
Metal Bank Limited (ASX – MBK) has announced a significant step in its Western Australian gold strategy with the proposed acquisition of key gold assets from Hastings Technology Metals (ASX – HAS). The deal, valued at $2.3 million in MBK shares, includes the Whiteheads Gold Project near Kalgoorlie, the Ark Gold Project in the Gascoyne region, and the Darcy’s Gold Project in the historic Halls Creek area. Completion of the transaction is contingent on due diligence, binding documentation, and shareholder approvals from both companies, expected by early November 2025.
Capital Raising to Fuel Exploration and Early Production
To support the accelerated development of these newly acquired assets and existing projects, MBK has launched a pro-rata entitlement offer aiming to raise up to $2.3 million at an offer price of $0.014 per share. The offer is partially underwritten by Equator Capital Management Ltd to a maximum of $1 million. Funds raised will be directed towards advancing scoping studies, securing mining approvals, heritage and native title clearances, and drilling programs at the Livingstone and Whiteheads projects, alongside progressing the Millennium Project in Queensland.
Experienced Leadership to Drive Growth
MBK has strengthened its leadership team with the appointment of Tim Gilbert as CEO and Charles Lew as a Non-executive Director. Gilbert brings over 30 years of mining engineering experience, including senior operational roles at major global mining companies such as Rio Tinto and Newmont. Lew, with a background in investment banking and rare earths project management, notably the Yangibana Rare Earths Project, is expected to provide strategic guidance as MBK expands its footprint in WA.
Project Highlights and Exploration Upside
The Whiteheads Gold Project, covering approximately 380 square kilometers, is strategically located near several operating processing plants, facilitating potential toll treatment options. Initial drilling campaigns have commenced to underpin a maiden Mineral Resource Estimate (MRE). Meanwhile, the Livingstone Project, where MBK holds a 75% interest, recently saw a 73% resource increase to 122,600 ounces of gold, with ongoing scoping studies targeting the Kingsley and Homestead deposits.
Beyond gold, MBK’s Queensland Millennium Project offers exposure to copper, cobalt, and graphite, with a 2012 JORC Inferred Resource of 8.4 million tonnes at 1.23% copper equivalent. The company is also advancing its strategic joint venture in Saudi Arabia, targeting copper, gold, and critical minerals within the Arabian Shield.
Risk Considerations and Forward Outlook
MBK’s investor presentation outlines comprehensive risk factors typical of exploration and development companies, including financing risks, exploration uncertainties, regulatory and environmental approvals, and operational challenges. The company cautions that completion of the Hastings acquisition and full subscription of the entitlement offer are not guaranteed. Nevertheless, the strategic acquisitions, capital raising, and leadership appointments position MBK to accelerate its pathway to production and resource growth in Western Australia.
Bottom Line?
MBK’s next moves, shareholder approvals, exploration results, and project milestones, will be critical in validating its fast-track WA gold strategy.
Questions in the middle?
- Will MBK secure full shareholder approval and complete the Hastings acquisition on schedule?
- How quickly can MBK convert exploration targets at Whiteheads and Livingstone into JORC-compliant resources?
- What impact will the new leadership have on operational execution and capital management?
