Peako Secures $5.17 Million to Drill High-Grade Gold Targets in Saudi Arabia

Peako's Bold Entry into Saudi Arabia's Gold Frontier

Peako Limited (ASX:PKO) is staking a claim in one of the world’s least explored yet highly prospective gold provinces with a binding agreement to acquire a 100% interest in six gold exploration projects spanning 862km² in Saudi Arabia’s Central Arabian Gold Region. This portfolio situates Peako within 65km of operating gold mines including the 2 million ounce Sukhaybarat and 3.4 million ounce Bulghah mines, positioning it firmly in a district-scale discovery zone.

The acquisition is more than just a land grab; it comes with drill-ready targets boasting impressive historical intercepts such as 4m at 11.32 g/t Au at Sukhaybarat South, 7m at 10.12 g/t Au at Jabal Jumaymah, and 2m at 13.53 g/t Au at Wadi Jarir. These high-grade zones remain open along strike and at depth, offering immediate opportunities for resource expansion.

Funded for Impactful Exploration in 2026

To bankroll this ambitious entry, Peako has secured firm commitments for a $5.17 million placement at 0.4 cents per share, representing a 40.8% discount to the 15-day VWAP. Directors and management have committed $625,000, subject to shareholder approval. The capital raise is earmarked to cover the acquisition cost, drilling programs targeting priority prospects, and ongoing exploration at Peako’s Australian projects.

Drilling is slated to commence in Q3 2026, focusing initially on the Western and Central prospects at Sukhaybarat South, as well as Jabal Jumaymah and Wadi Jarir. Complementary surface exploration including mapping, magnetics, and infill soil sampling will underpin the discovery pipeline, particularly at Bulghah East and Ad Dirabi, where soil anomalism and ancient workings hint at untapped potential.

Experienced Leadership to Navigate a New Mining Landscape

Peako is not venturing blindly. The company is appointing Oliver Jones, a Saudi-based exploration manager with 14 years’ regional experience, to lead in-country operations. Jones’ expertise in gold systems and his track record in discovery-driven exploration will be critical in unlocking the portfolio’s value.

Adding to the depth of experience, Marcus Harden, a geologist with a solid discovery record across multiple continents and president of TSX-V Gladiator Metals, will join Peako’s board as a Non-Executive Director. Strategic Adviser Tony Manini, known for his involvement in major global discoveries, will oversee the implementation of Peako’s district-scale exploration strategy.

Saudi Arabia’s Mining Renaissance

Saudi Arabia is rapidly emerging as a mining destination of global significance, with reforms under its Vision 2030 program opening the sector to foreign investors and explorers. The country offers attractive fiscal terms including 15-year tenure, 1.5% royalty (with a five-year holiday), 20% corporate tax, and exploration incentives such as cash rebates and interest-free government funding for mine development.

Major players like Barrick Gold, Zijin Mining, and Hancock Prospecting have already established a presence, signalling confidence in the jurisdiction’s potential. Peako’s portfolio benefits from excellent logistics; limited vegetation, low topography, and access via sealed highways and desert tracks; making it a cost-effective playground for exploration.

Deal Structure and Shareholder Approval Ahead

The acquisition consideration includes a modest $100,000 cash payment, 200 million shares subject to escrow, and nearly 955 million performance rights tied to exploration milestones, including drilling and resource estimates of 1 million and 2 million ounces of gold. A 1% net smelter returns royalty also forms part of the deal.

Legal title transfer will occur 12 months after licence grant per Saudi regulations, but Peako will have beneficial ownership and operational control immediately through binding contractual arrangements. Shareholder approval will be sought at an Extraordinary General Meeting expected in late July 2026, alongside approval for the placement and incentive securities.

This acquisition marks a significant pivot for Peako from its previous focus in Australia’s East Kimberley region, where exploration has been ongoing but constrained by seasonal and strategic challenges. The Saudi portfolio offers a fresh, well-funded platform with a clear pathway to discovery and growth.