Avira’s Mt Cattlin Deal Hinges on Exploration Success and Licence Extension

Strategic Acquisition in a Proven Gold Belt

Avira Resources Limited (ASX – AVW) has announced a binding agreement to acquire the Mt Cattlin Gold Project, a high-grade gold asset located in Western Australia's Ravensthorpe Greenstone Belt. This region is renowned for its mineral endowment and proximity to established operations, including the Rio Tinto Lithium-owned Mt Cattlin Lithium Mine. The acquisition positions Avira to tap into a historically productive area with strong potential for near-term development.

The project boasts a JORC 2012 compliant Mineral Resource Estimate (MRE) of 22,940 ounces of gold at an average grade of 3.94 grams per tonne, with approximately 60% classified as Indicated and 40% as Inferred. Historical mining records reveal production of over 23,000 tonnes at an impressive 24.56 g/t Au, underscoring the project's rich gold endowment.

Exploration Upside and Geological Potential

Beyond the existing resource base, Mt Cattlin offers substantial exploration upside. The project encompasses the Maori Queen and Sirdar prospects, which exhibit inherently high-grade gold mineralization suitable for small-scale open-pit mining. Comprehensive geophysical surveys, including induced polarisation and aeromagnetic data, have identified multiple coincident anomalies aligned with known mineralization and structural controls.

Several untested targets along strike, down-dip, and on parallel structures present immediate opportunities for resource growth. Notably, drill intercepts at prospects such as Plantagenet and Ellendale have returned high-grade results, including 4 meters at 15.07 g/t Au and 11 meters at 2.5 g/t Au respectively, highlighting the broader potential of the project.

Capital Raising to Fuel Development

To support the acquisition and exploration activities, Avira has secured firm commitments for a $2.5 million capital raise through a two-tranche placement at $0.01 per share. The funds will be allocated towards drilling programs, data processing, corporate administration, and general working capital. The placement includes participation from existing substantial shareholders and is managed by CPS Capital Group Pty Ltd.

Phased Advancement Strategy

Avira plans a focused, phased approach to rapidly de-risk and expand the Mt Cattlin resource. The initial phase targets resource confirmation and upgrade through detailed data compilation and targeted drilling, aiming to convert a significant portion of Inferred Resources to Indicated status within the next year. Subsequent phases will focus on resource growth, including a revised Mineral Resource Estimate and testing of new high-priority exploration targets identified during early works.

The company also intends to seek an extension of the exploration licence, currently set to expire in March 2026, to secure long-term tenure for project development.

Considerations and Next Steps

The acquisition terms include the issuance of shares and performance rights to current owners, alongside a 1% net smelter return royalty with a buyout option. While the mineral resource and exploration data are based on historical information from Traka Resources Limited and have not been independently validated by Avira, the company expresses confidence in the project's potential and plans to undertake comprehensive verification and expansion drilling.

Avira's move into Mt Cattlin marks a significant step in its growth trajectory, complementing its existing projects in Western Australia and Sweden. The market will be watching closely as the company advances its exploration programs and updates its resource estimates in the coming months.