Trafford Resources (TRF) is pleased to announce the purchase of Southern Gold Limited’s (SAU) 51% share in the Challenger Joint Venture with Dominion Gold Operations (DGO), a 100% owned subsidiary of Kingsgate Consolidated Limited (KCN). Agreement has been reached between all parties and completion of the proposed transaction is subject to final execution of formal documentation for the sale and purchase including a Deed of Assignment for the 51% JV interest. Together with this area Trafford now controls 5,653 Km2 of highly prospective exploration licences on South Australia’s Gawler Craton immediately adjacent to the Kingsgate’s Challenger Operations.
2,841 Km2 Western Gawler Craton Gold JV (TRF 51%/ DGO 49%). 2,812 Km2 100% Trafford Owned. Trafford are proud to have a significant partner in Kingsgate and look forward to working with them in developing the economic potential of the area. Preliminary discussions have been held with Kingsgate and in terms of the Joint Venture Agreement, Trafford activities in the area fall under an existing and ongoing Access Deed already arranged by DGO with the Australian Defence Department and South Australian Government for the Woomera Prohibited Area (WPA).
Trafford activities stand to be further boosted by the recent announcement by the South Australian government to provide $2.0 million of funding to promote exploration on the Gawler Craton within the recently opened WPA. Southern Gold earned their 51% share in the Joint Venture by spending $2 million on the tenements surrounding Challenger. Trafford have purchased this for $500,000 cash and 3,000,000 Trafford shares. Upon Trafford entering into a feasibility study on a JORC resource of over 500,000oz gold, Trafford will issue a further $1 million worth of Trafford shares to Southern Gold.
“Trafford is very well placed to take advantage of the exploration boom in South Australia. Together with its Wilcherry Hill Project (2,692Km2) on the Eyre Peninsula and this Western Gawler Craton project Trafford now has >8,300 Km2 of Gawler Craton to define and develop targets. The Gawler Craton has produced a number of world class deposits such as Olympic Dam, Prominent Hill and Challenger Gold Mine and there is no reason why it cannot be repeated” said Ian Finch M.D. of Trafford Resources.
Tags: acquisition, Gold Mining, SAU, Southern Gold, Trafford Resources, TRF
