News: Reedy Lagoon Corporation acquiring gold mine in Victoria

Reedy Lagoon Corporation (ASX:RLC) is acquiring 100% of Cassilis Mining, which has an agreement to acquire mining licence MIN5335 over most of the Cassilis Gold Mine near Omeo, Eastern Victoria.

Cassilis has ore processing equipment including a tailings and two water storage dams, together with crushing and milling equipment capable of processing ore at a rate of about 7 tonnes per hour.

Mining operations are currently being undertaken at MIN5335: rock has been recovered from one of the adits of the Cassilis mine and is stockpiled in preparation for processing through the plant.

Cassilis Mining also has applications for exploration licences covering part of the Cassilis goldfield.   
Under the agreement :
- Reedy Lagoon has issued 1 million RLC shares in RLC to the 2 shareholders of Cassilis Mining on signing;
- It will investigate the assets of Cassilis Mining including conducting geochemical sampling to confirm reported gold grades and mullock tonnages held by Cassilis Mining;
- If RLC decides to proceed with the acquisition, it will issue a further 3 million shares to the 2 shareholders in Cassilis Mining and Cassilis Mining will grant each of those shareholders a 1% gold royalty.

The company is planning to raise capital through an entitlement offer to fund costs of investigating the assets and for working capital.

If sufficient resources can be identified in the mullock dumps, the purchase of Cassilis Mining provides RLC with an opportunity to develop a profitable mining operation and a base from which to explore the Cassilis Goldfield for additional resources.

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