Aussie gold producer buys Diwalwal miner

An Australian gold producer has acquired a Singapore-based company that holds rights to a high-grade gold project at the Diwalwal Mineral Reservation, even as regulatory reviews continue to hamper the activities of many local players.

Tribune Resources Ltd. reported to the Australian Securities Exchange that it had acquired 100 percent of the issued capital of Prometheus Developments Pte Ltd through the issue of 5.5 million shares in the latter.

At an issue price of $4.50 a share, the transaction is valued at $24.75 million.

Prometheus has the right to acquire an 80-percent economic interest in three mining tenements covering the Diwalwal Gold Project, which is located 40 kilometers south of the currently productive Co-O gold mine in Mindanao.

“Diwalwal ticks all the right boxes for us in terms of adding value for shareholders,” Tribune director Gordon Sklenka said in a statement.

“The project has secure tenure, excellent grades, prospective geology and the potential for the delineation of a very large gold deposit,” Sklenka said.

He added that, following the acquisition, Tribune wanted to start drilling and defining a regulatory compliant mineral resource in the first half of 2019.