Sipa Resources Ltd (ASX:SRI) will strengthen its focus on five Western Australian projects after the sale of the Murchison Gold Project to Ora Gold Ltd (ASX:OAU), in return for 1.4 million in the form of $600,000 in cash and $800,000 in OAU shares.
The Murchison Project is directly adjacent to and contiguous with Ora Gold’s existing tenure, complementing that company’s current assets and enhancing plans to make further discoveries in the district.
Sipa expects the transaction to be complete by the end of August, with 50% of the cash and share consideration to be transferred at that time and the balance to be delivered in three months from close.
Win-win transaction
“We see this as a win for each party,” Sipa Resources managing director Pip Darvall said.
“For Sipa, it allows the company to focus on its remaining five projects in Western Australia, as well as bolstering the cash balance of the company to support its upcoming exploration programs, while the Sipa tenure will add considerable scale to Ora’s project, where it is aggressively exploring and building its resource base in the Murchison.”
Sipa is advancing five projects in Western Australia:
- Paterson North Copper-Gold Project in partnership with Rio Tinto (ASX:RIO) Exploration;
- Barbwire Terrace Base Metals Project in joint venture with energy company Buru Energy Ltd (ASX:BRU, OTC:BRNGF);
- Wolfe Basin Base Metals Project;
- Warralong Project, prospective for gold, lithium-tin-tantalum and nickel-copper; and
- Skeleton Rocks Project, prospective for gold, lithium and nickel-copper-platinum group elements.