LONDON (ShareCast) - (Sharecast News) - Precious metals exploration and trading company Wishbone Gold has signed an exclusive deal to acquire full ownership of the 92.19 square kilometre Cottesloe Project in the Patersons Range region of Western Australia, it announced on Wednesday.
The AIM-traded firm said it signed an exclusive option to acquire the project, and agreed to issue Alta Zinc with 600,000 new Wishbone shares at a deemed issue price of 14p each in consideration for the option.

It explained that the option term would be the period until the approval of the extension of the term of E45/4543, which was due for renewal by 30 June.

Assuming that Wishbone proceeded to acquire the projects, it said it would pay the vendors a cash payment of £35,000 to Mining Equities, and issue Mining Equities with 600,000 new Wishbone shares, and David Lenigas with 300,000 new Wishbone shares.

Those 900,000 acquisition shares, at a deemed issue price of 14p, would equate to £0.13m, giving a total consideration in shares and cash of £0.25m.

Wishbone said the proposed acquisition would more-than-double its exposure in the "well-endowed" gold province of the Patersons, increasing its tenement holding to 159 square kilometres from 67 square kilometres.

It said rock chip geochemical sampling results reported up to 298 grams of silver per tonne on the project, with multiple significant drilling results including five metres at 102 grams of silver per tonne from 14 metres on hole hole SCR225, including two metres at 165 grams per tonne.

At hole SCR247, it highlighted two metres at 73 grams of silver per tonne and 4.6% lead from eight metres, and on hole EWP-2 it reported 22 metres at 42.7 grams of silver per tonne from eight metres, including eight metres at 72.13 grams per tonne from 22 metres.

On hole EWP-3, it reported 18 metres at 29.3 grams of silver per tonne from six metres, and at hole EWP-7, it highlighted 20 metres at 35.9 grams of silver per tonne from two metres, including two metres at 100 grams per tonne from eight metres and four metres at 69 grams per tonne from 16 metres.

Finally, at hole EWP-11 it highlighted four metres at 41.25 grams of silver per tonne from 14 metres and 10 metres at 41.6 grams per tonne from 24 metres, on hole EWP-12 it reported eight metres at 58.37 grams per tonne from 20 metres, and at hole EWP-24 it highlighted eight metres at 54.87 grams of silver per tonne from 40 metres.

Wishbone said the mineralisation trends were interpreted to be over a 12 kilometre strike.

"With silver becoming increasingly in demand with the climate change agenda initiatives, the silver potential is exceptional here at Cottesloe," said chairman Richard Poulden.

"This project is a very exciting new acquisition for Wishbone.

"The acquisition of this project more than doubles our tenement size in the exciting Patersons Range region of Western Australia."

Poulden said the company saw the potential for Cottesloe to host both precious metals and base metals as "very high", based on historic data available through the Western Australian Government archives.

"The company is well placed to move quickly on the due diligence process on Cottesloe, having recently completed the acquisition of our three other tenements in the same area.

"Technical and legal due diligence is underway and further updates will be advised as soon as they become available."

At 1218 GMT, shares in Wishbone Gold were up 5.09% at 14.45p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE