How Will Solara’s New WA Gold-Copper Projects Transform Its Growth Story?
Solara Minerals has agreed to acquire a portfolio of seven exploration licences in Western Australia's Murchison region, positioning itself near major gold and copper mines. The deal includes immediate exploration plans and potential milestone-based share payments.
- Acquisition of seven exploration licences totaling 310 sq km in the Bryah Basin
- Projects located near Sandfire Resources’ Degrussa Copper-Gold Mine and Westgold’s Peak Hill Gold Mine
- Initial geophysical surveys underway with drilling planned pending approvals
- Consideration includes cash reimbursement and issuance of shares, with deferred shares tied to drilling success
- Completion targeted by end of July 2025, subject to conditions including shareholder agreements
Strategic Expansion in a Proven Mining District
Solara Minerals Ltd (ASX, SLA) has taken a significant step to bolster its exploration portfolio by entering into a binding agreement to acquire 100% of OD4 Tom Price Pty Ltd. This company holds seven granted exploration licences covering a substantial 310 square kilometres in the Bryah Basin, part of the highly prospective Murchison region of Western Australia.
The Bryah Basin is renowned for its rich endowment of gold and copper-gold mineralisation, hosting several major operations including Sandfire Resources’ Degrussa Copper-Gold Mine and Westgold Resources’ Peak Hill Gold Mine. Solara’s newly acquired projects are strategically positioned close to these established mines, offering promising geological continuity and exploration upside.
Project Highlights and Exploration Plans
The portfolio includes the Degrussa West Project, located just 17 kilometres along strike from Sandfire’s Degrussa Mine, which boasts a resource of 13.8 million tonnes grading 4.8% copper and 1.8 grams per tonne gold. Historical geophysical surveys have identified multiple untested bedrock conductors within the same geological sequence, which Solara is now following up with ground-based electromagnetic surveys to refine drill targets.
Another key asset, the Wilgeena Project, lies near Westgold’s Peak Hill Gold Mine and Catalyst Metals’ Hermes gold deposits. Previous exploration has revealed anomalous gold and copper values, particularly in the under-explored northern sector, which Solara plans to investigate further through mapping, sampling, and reconnaissance drilling.
Additional projects in the portfolio, including Mikhaburra and Karalundi, also show potential with identified electromagnetic conductors yet to be tested by drilling. Solara’s approach combines modern data science and geophysical techniques to unlock value from these under-explored tenements.
Acquisition Terms and Strategic Rationale
The acquisition consideration involves a cash reimbursement of $130,000 to the sellers, alongside the issuance of 1.25 million fully paid ordinary shares to the shareholders of OD4 Tom Price Pty Ltd. Furthermore, Solara has structured a deferred consideration of 1.5 million shares, contingent on achieving a significant mineralised drill intersection within three years, aligning incentives for exploration success.
Completion of the deal is targeted for the end of July 2025, pending due diligence, shareholder agreements, and regulatory approvals. Notably, Solara does not intend to seek shareholder approval to proceed, indicating confidence in the transaction’s strategic fit.
Executive Director Tony Rovira emphasised the alignment with Solara’s business model, highlighting the opportunity to tap into one of Western Australia’s hottest gold exploration districts and to test for analogues of world-class copper-gold deposits.
Looking Ahead
With initial geophysical survey results expected imminently and drilling plans in place, Solara is poised to advance these projects rapidly. The acquisition not only expands the company’s footprint in a prolific mining region but also offers potential for significant resource discoveries that could materially enhance shareholder value.
Bottom Line?
Solara’s acquisition marks a pivotal expansion in WA’s gold-copper belt, with upcoming drilling results set to shape its growth trajectory.
Questions in the middle?
- Will Solara’s upcoming drilling confirm the presence of high-grade copper-gold mineralisation analogous to Degrussa?
- How will the company manage exploration risks and regulatory approvals to meet its ambitious timelines?
- What impact will this acquisition have on Solara’s capital structure and future funding needs?
