I forgot to mention that higher gold prices, especially at the near-record highs, we are at today, means that gold miners' profits and cashflows are at record high levels.
Gold Price in AUD
Gold Price USD
This would also allow them to take on added debt and offer larger cash payments for a low capex, low opex, high cashflow gold mine(s) like Siren's.
It is usually a combination of script/share, debt and cash that gets the deal done.
There dozens of gold miners with excellent cashflows and balance sheet positions that are looking for a low capex and low All In Sustainable Cost and new DIscovery cost per ounce to continue to expand their Gold Resources and Reserves. They don't have the time to slowly to explore and then if they find a discovery, drill out their own tenements.
It is much more efficient to cherry pick the lowest cost Capex and Opex gold mines to acquire, with such a strong and rising gold price.
Since Siren Gold's gold deposits are all at surface and near surface they can quickly turn a profit as they are building the underground mine.
The actual rock that they would be extracting to build the underground gold mine at Alexander River or Big River contains high grade gold from surface (see images below). There is not the waste product like you would find at Penny West where they would have to spend $20-30+million removing the 200metres of rock before they get to the gold bearing ore.
Underground gold mining tunnels are approx. 5-6metres wide by 5-6metres high, so Siren would be generating high profit gold sales as they build their underground gold mine.
Siren's Reefton Goldfields has all these features that would allow for a rapid low cost gold mine to begin generating strong cashflows.
