Gold explorer and developer Labyrinth Resources Ltd (ASX:LRL) has seen its share price jump almost 220% on news of two gold project acquisitions in prospective regions of Western Australia.
At 13:08 AEDT, Labyrinth shares were trading at 1.6 cents, a rise of 219.99% since the market opened.
This came after the company announced it was set to grow its investment in the Comet Vale Gold Project – 32 kilometres south of Menzies – from 51 to 100%, while also taking on 100% of the Vivien Gold Project, which is located 6 kilometres from the Agnew Gold Mine near Leonora.
The Comet Vale acquisition is being organised via a binding option agreement through which Labyrinth has been given a 12-month option to pick up Sand Queen Gold Mines Pty Ltd’s 49% interest in the project for $3 million cash, adding to its current investment of 51% in the project.
Vivien – on the other hand – has been picked up through a binding share sale agreement in which the company will take on 100% of Distilled Analytics Pty Ltd’s investment in the project.
The acquisitions reflect Labyrinth’s plans to build a portfolio of gold mines close to infrastructure within the Menzies, Leonora and Leinster corridor, with both offering near-term development options.
Vivien – previously held by Ramelius Resources Ltd (ASX:RMS) – holds a existing project drill database which should facilitate definition of a JORC mineral resource estimate (MRE) across the Vivien Main Pit and Vivien Gem Prospect, while Comet Vale reported an updated MRE of 96,000 ounces at 4.8 grams per tonne last year.