Arika to Issue 59 Million Shares in A$2.5M Deal for 100% Gold Project Ownership

Strategic Consolidation in Western Australia’s Goldfields

Arika Resources Limited (ASX – ARI) has taken a decisive step to consolidate its position in the highly prospective Leonora-Laverton gold region by entering into a binding agreement to acquire the remaining 20% interest in the Yundamindra and Kookynie Gold Projects. This move will see Arika move from an 80% to full 100% ownership of these flagship assets, streamlining operational control and strategic flexibility across the tenements.

The acquisition, subject to shareholder and regulatory approvals, involves a cash payment of A$2.5 million (net of prior funding contributions) and the issuance of nearly 59 million fully paid ordinary shares, alongside deferred consideration shares tied to future resource milestones. This structure aligns incentives for both parties and underscores confidence in the projects’ exploration upside.

Unlocking High-Grade Potential with Renewed Drilling

Recent drilling campaigns at the Yundamindra project have delivered impressive high-grade gold intercepts, notably at the Pennyweight Point prospect. Highlights include intercepts such as 10 metres at 9.02 grams per tonne gold from 252 metres depth, including narrower zones exceeding 19 grams per tonne. These results build on a strong foundation of historical production and modern exploration, suggesting significant mineralisation remains at depth and along strike.

Drilling recommenced in early January 2026, with assays from the final phase of the 2025 program and ongoing work expected shortly. These results will feed into Arika’s maiden Mineral Resource Estimate, a critical milestone that could materially enhance the valuation and development prospects of the projects.

Strategic Location and Infrastructure Advantage

Both Yundamindra and Kookynie are strategically located within trucking distance of established processing mills and major road infrastructure in the Eastern Goldfields. The projects encompass multiple granted mining leases, providing a solid platform for near-term development opportunities. Kookynie, in particular, holds historical high-grade production records and remains underexplored despite its proximity to significant gold operations.

Arika’s Managing Director, Justin Barton, emphasised the importance of full ownership in accelerating exploration and development. He highlighted the projects’ compelling exploration potential, supported by both recent drilling success and the underexplored nature of the tenements.

Looking Ahead – Growth and Value Creation

The consolidation marks a pivotal moment for Arika as it seeks to unlock value from two world-class gold projects in one of Australia’s premier gold provinces. With the complexity of joint venture arrangements removed, the company can now pursue a more streamlined and focused exploration strategy. The upcoming assay results and maiden resource estimate will be key catalysts to watch in the coming months.

While the transaction awaits formal approvals, the market will be keenly observing how Arika leverages full ownership to drive growth and shareholder value in 2026 and beyond.