Magmatic Issues 15 Million Shares as Weebo Project Drilling Begins
Magmatic Resources has completed the second stage of acquiring the Weebo Gold Project in Western Australia and initiated a robust exploration program targeting high-potential gold zones.
- Stage 2 acquisition of three key exploration licenses finalized
- Exploration activities including soil sampling and rock chip assays underway
- High-grade gold sample of 48.1 g/t confirmed from recent fieldwork
- Upcoming extensive drilling programs planned at multiple advanced targets
- Issuance of shares and performance shares completes acquisition compensation
Strategic Acquisition Completion
Magmatic Resources Limited (ASX – MAG) has successfully completed Stage 2 of its acquisition of the Weebo Gold Project, a significant milestone that brings three exploration licenses under its control following their renewal. This acquisition consolidates Magmatic’s position in the highly prospective Yandal Greenstone Belt, a region renowned for its rich gold mineralisation and proximity to several major gold mines.
Exploration Momentum Builds
Following the acquisition, Magmatic swiftly commenced exploration activities on the newly acquired licenses. Initial efforts have focused on detailed infill soil sampling to investigate surface anomalies, with assay results pending. Notably, rock chip and drill cutting samples from recent fieldwork have already yielded promising results, including a standout 1-meter sample grading 48.1 grams per tonne of gold, confirming the presence of high-grade primary quartz-vein structures at the Scone Stone target.
Ambitious Drilling Campaigns Ahead
Looking ahead, Magmatic has secured contractors for an extensive auger sampling program and a substantial aircore and reverse circulation drilling campaign totaling approximately 2,500 meters. These programs are set to test both early-stage and advanced targets such as Scone Stone and Ockerburry, with further drilling planned later in the year at additional prospects including Otto and Wheel of Fortune. This aggressive exploration schedule underscores the company’s commitment to rapidly advancing the project towards new gold discoveries.
Strategic Location and Industry Context
The Weebo Gold Project’s location is particularly strategic, situated roughly 30 kilometers east of Leinster and surrounded by five multi-million ounce gold mines operated by industry leaders such as Vault Minerals, Gold Fields, Bellevue Gold, and Northern Star Resources. This positioning offers Magmatic a valuable foothold in a prolific gold region, enhancing the potential for significant resource growth.
Capital Structure and Share Issuance
As part of the Stage 2 acquisition completion, Magmatic issued 8.4 million fully paid ordinary shares and 4.2 million performance shares to vendors, alongside 2.4 million shares to NGR shareholders, all subject to a 12-month voluntary escrow. These issuances represent the final 30% of the total compensation under the acquisition agreements, marking a key step in securing full ownership and control of the project assets.
Bottom Line?
Magmatic’s decisive acquisition and exploration push at Weebo sets the stage for potential new gold discoveries that could reshape its growth trajectory.
Questions in the middle?
- What will the pending assay results from soil sampling reveal about the broader gold potential?
- How will upcoming drilling results impact the project’s resource estimates and valuation?
- What are the implications of the recent share issuances on Magmatic’s capital structure and shareholder dilution?
