Sipa Raises $1.75M to Fund Four New Gold Projects Spanning 759km²

Strategic Acquisition of Gold Projects

In a decisive move to bolster its exploration portfolio, Sipa Resources Limited (ASX: SRI) announced the binding Heads of Agreements to acquire a 100% interest in four advanced gold exploration projects spanning South Australia and Western Australia. These projects, Tunkillia North, Nuckulla Hill, Skye in South Australia, and Crown in Western Australia, cover a combined area of approximately 759 square kilometres, strategically located near established gold deposits and infrastructure.

The South Australian tenements are notably adjacent to the 1.5 million ounce Tunkillia gold deposit and in proximity to the Challenger gold mill, underscoring the prospective nature of these assets. The Crown project in Western Australia lies within the prolific Eastern Goldfields, near Black Cat Syndicate’s significant gold operations and proposed milling facilities.

Consideration and Capital Raising

The acquisition consideration is structured with a mix of cash and equity, totaling up to $2.2 million. This includes an initial cash payment of $200,000, the issue of 53.6 million Sipa shares valued at $750,000 (subject to shareholder approval), deferred shares worth $500,000 payable 12 months post-completion, and a milestone payment of $750,000 contingent on reporting a JORC-compliant inferred resource of 100,000 ounces of gold.

To support this acquisition and ongoing exploration, Sipa has secured firm commitments for a $1.75 million capital raise through a two-tranche placement. The first tranche, raising approximately $740,000, has been completed, with the second tranche pending shareholder approval. Board members, including the incoming director Stephen Biggins, intend to participate in the raise, signaling strong internal confidence.

Board Enhancement and Expertise

Stephen Biggins, former Managing Director of Core Lithium Ltd, will join Sipa’s board and become its largest shareholder upon completion of the acquisition. Biggins brings three decades of global exploration and mining experience, having led Core Lithium from discovery through to a $2 billion market cap mining operation. His appointment is expected to provide strategic guidance and operational expertise as Sipa accelerates its exploration activities.

Ongoing Exploration and Project Development

Alongside the acquisition, Sipa continues to advance its existing projects. Recent reverse circulation drilling at the Paterson North copper-gold project and aircore drilling at the Skeleton Rocks nickel-cobalt project have been completed, with assay results expected shortly. Meanwhile, the Barbwire Terrace base metal project benefits from detailed ground gravity surveys that have refined structural interpretations, aiding in targeting future drill holes.

Exploration plans for the newly acquired projects prioritize detailed data reviews, additional geochemical sampling, heritage surveys, and both aircore and RC drilling. The company aims to maintain a steady news flow by balancing work across new and existing assets, enhancing shareholder value through potential discoveries.

Financial Position and Outlook

Following the first tranche of the capital raise, Sipa reported a cash balance of $1.61 million at the end of December 2024, with no debt. The company acknowledges that while operating cash outflows were elevated during the quarter due to exploration and joint venture cash calls, these are expected to normalize. The successful completion of the second tranche of the capital raise will further underpin exploration funding and acquisition commitments.

Looking ahead, the market will be watching closely for the upcoming drilling results from Paterson North and Skeleton Rocks, as well as the progress on the new gold projects. Sipa’s strategic acquisitions and strengthened board composition position it well to capitalize on the robust gold exploration environment in Australia.