Ann: Acquisition of the 5.4Moz AuEq Rogozna Gold Project, page-27

And another good summary below, lots of positives to come out of today’s announcement:

STK Outlook
This transaction marks a key initial milestone in the Strickland Story and sets a foundation to transform the company into a much larger one. Most importantly, it has once again demonstrated management’s ability to deliver in executing value accretive transactions for shareholders. In the last 12 months STK have proved they can advance their projects in Western Australia to a point whereby they have a track record in transacting with a multi-billion-dollar ASX 200 counterparty (Last year’s sale of their Millrose Gold Project to Northern Star (NST.ASX) for $61 million). This milestone last year was as a major first step in a much larger strategy and as a result, Strickland is extremely well-funded to advance exploration at both the Yandal and Rogozna Projects, with cash and Northern Star Resources Ltd (ASX:NST) shares totalling approximately $54m at the end of the December quarter. With such a robust balance sheet, it is important to note that STK plans to continue to aggressively upgrade its portfolio of its existing gold prospects on the Yandal Belt in Western Australia to a standard similar to that of Millrose and in due course intend to replicate the success of last years transaction with NST with future transactions.

In regard to the Serbia acquisition-with its highly skilled, low-cost workforce and favourable tax regime, the country has attracted the presence of several major miners including BHP, Vale and Rio Tinto. Incoming STK Managing Director, Paul L’Herpiniere said Rogozna has had about $60m spent on it to date in the form of various drilling program and technical studies. “We’ve got over 100,000m of drilling, four defined gold-copper-zinc deposits, with two of those projects holding a JORC resource with a combined 5.4Moz,” he says. “The other two have an exploration target of over 150Mt, so this is a really rare project both in terms of the fact that it is advanced but also… it’s massive. “We are really confident with this project, we see so much upside there that we want to bring to market now to take it to the next step.” Serbia is currently one of the most attractive mining jurisdictions globally benefiting from:Low (15%) corporate tax rate;Good-quality infrastructure;Highly-skilled work force;Low-cost power;Multiple major mining projects in operation and development; andA modern mining code.

This week, the Gold market hit all time highs trading well over USD$2400 an ounce. To go with this, the average Enterprise Value/Total Resource oz (A$/oz) for Gold Explorers/Developers Globally currently sits around $71 an ounce. These metrics bode extremely well for potential valuation of STK with the acquisition of Rogozna delivering a project with a resource of an initial 5.4 million ounces (~$380m implied project value at this global average of $71 an ounce). It must be stressed this is just the initial resource and for Serbia only. This project has significant potential to grow to 10m-15m oz + with the drill programs planned in 2024/2025 at which point it could be expected the project will come onto the radar of major global mining companies.

It is also important to note that STK intend to continue to aggressively advance their Western Australian Gold assets where they will target the discovery of Major gold deposits in the Yandal belt- offering the exciting opportunity for shallow oxide resource growth. With the Transaction to settle in coming months-Value accreditive considerations for STK would be:Future scale/upside of existing projects⁠Value of new incoming board members⁠Improvement of overall average industry valuation for pre-production gold assets in terms of EV/Resource to reflect current all time high gold prices⁠Development of other projects⁠Value associated in the transition of the register to be more institutional based At a current market cap of ~$200m, STK will have consistent news flow in coming months as they use this transaction as the foundation to build a much larger mid-cap ASX company with a suite of both Western Australian and Serbian projects that have potential to become some of the largest undeveloped gold deposits globally.