Labyrinth Resources (ASX: LRL) Acquires New Assets to Boost Gold Exploration in Western Australia

Key Highlights:

• Labyrinth Resources signs agreements to acquire Comet Vale and Vivien Gold Projects.
• Acquisitions align with the company's strategy to consolidate and grow high-grade gold mines.
• Comet Vale project updated with a Mineral Resource of 96koz at 4.8g/t Au.
• Vivien Gold Project presents a near-term opportunity for JORC mineral resource definition.
• Equity Raising and Entitlement Offer to fund exploration and development
• Significant share price movement as of today.

Labyrinth Resources Limited (ASX: LRL), an emerging gold exploration company, has strategically positioned itself for substantial growth with the acquisition of key gold projects in Western Australia. The company has entered into binding agreements to acquire the remaining 49% interest in the Comet Vale project and 100% of the Vivien Gold Project, previously owned by Ramelius Resources Limited (ASX: RMS).

These acquisitions are integral to Labyrinth's strategy of consolidating and expanding underexplored high-grade gold mines in the Menzies, Leonora, and Leinster corridor, which are known for their rich mineral deposits and existing infrastructure.

Comet Vale and Vivien Gold Projects

The Comet Vale project, located 32km south of Menzies, has seen an updated Mineral Resource estimate of 96koz at 4.8g/t Au. This acquisition allows Labyrinth to increase its stake to 100%, providing full control over the exploration and development activities. The project is set on granted mining leases, ensuring smooth operational continuity. The recent focus on Comet Vale highlights the potential for significant resource growth with unexplored strike potential and favorable geological settings.

Vivien, a historical underground gold mine near the Agnew Gold Mine, offers Labyrinth an opportunity to quickly establish a JORC mineral resource. The project encompasses five Mining Licences and one Prospecting Licence over an area of 20.4km². With historical production between 1902 and 1911 totaling 76,000oz at 12.4g/t Au and recent production under Ramelius yielding 260koz at 5.68g/t Au, Vivien is poised for further exploration success. The availability of nearby gold processing mills further enhances its commercial viability.

Labyrinth Resources has secured firm commitments for a two-tranche placement to raise $2.0 million, complemented by a 1-for-1.9813 non-renounceable Entitlement Offer aiming to raise an additional $2.0 million. These funds will be crucial in advancing exploration at both Comet Vale and Vivien, along with maintaining tenement holdings at the Labyrinth Gold Project in Quebec, Canada.

Following the completion of these transactions and full participation in the equity raising, Labyrinth's market capitalisation is projected to reach approximately $13.7 million, with pro-forma cash holdings of around $4.0 million before transaction costs.

Company Overview

Labyrinth Resources Limited is dedicated to the exploration and development of high-grade gold assets. The company's portfolio includes the Comet Vale and Vivien projects in Western Australia and the Labyrinth Gold Project in Quebec, Canada. The recent acquisitions and capital raising efforts reflect Labyrinth's commitment to enhancing shareholder value through strategic growth and resource development.

Current Share Price Movement

Back of today’s ASX announcement, Labyrinth Resources' (ASX: LRL) share price zoomed 200% to reach to 0.015 as of 4PM AEST, 17th July 2024.