Empire Metals to acquire controlling stake in WA gold mining licence

Exploration and development company Empire Metals has entered into an option agreement to acquire a 75% interest in Western Australia's high-grade Eclipse gold mining licence from Philips Exploration.

Empire will acquire a controlling interest in the large, previously producing mining licence, located 55km north-east of Kalgoorlie, as part of a six-month option.

The AIM-listed group will satisfy the transaction by way of an AUD $100,000 (£54,580) cash payment and the issue of 9.38m new ordinary shares at a price of 1.75p each.

Empire has also agreed to spend a further AUD $300,000 (£163,750) on exploration at the site within the six-month period.

Chief executive Mike Struthers said: "This project has received very little exploration across most of the licence area, which is remarkable given the very high-grade nature of the mineralisation both at depth and along strike from the shaft that ceased operation in 1910.

"By entering into an option over the project we are gaining a foothold in one of the most productive gold regions in Australia, surrounded by a number of major producers. Eclipse has been privately held by one individual for around 30 years. Historical production records have been preserved, and together with recent geophysics and drilling there is now a robust understanding of the gold mineralisation and the potential for significant high-grade gold resource development."

As of 0920 BST, Empire shares were up 1.20% at 2.53p.