For just $2.5 million in cash (net of funding contributions already made by Arika – expected to be a net $500,000 at completion), close to 59 million in shares and 12m in deferred shares to be paid out on resource milestones, Arika Resources (ASX:ARI) has secured the final 20% of the projects it didn’t already own from JV partner Nex Metals Exploration (ASX:NME).

It gives Arika and its shareholders full exposure to the upside in the assets, including historically high-grade mines which are seeing their first systematic exploration in decades under Arika’s ownership.

“We are delighted to have secured another highly value-accretive consolidation transaction in the heart of the highly sought-after and competitive Leonora district, building on our Kookynie acquisition last year,” Arika managing director Justin Barton said.

“Securing 100% ownership of the Yundamindra and Kookynie projects is a major milestone for Arika. It gives us full control over our flagship assets and removes the complexity of joint venture arrangements, allowing us to accelerate exploration and development across two highly prospective tenement packages.

“Yundamindra and Kookynie both have a strong history of high-grade gold production and significant upside potential at depth and along strike. With the consolidation complete, we are well positioned to unlock value from these world-class project(s) for our shareholders.”

With that key step in the bag, Arika has resumed drilling at the Yundamindra project near Laverton.

Surrounded by processing plants and mines owned by global majors like Gold Fields, AngloGold Ashanti and Genesis Minerals (ASX:GMD), Yundamindra’s Pennyweight Point prospect has delivered drill hits over the past year which cry out for further investigation.

Highlights have included:

  • 10m at 9.02g/t Au from 252m (25AYRC148, EOH), including 6m at 13.87g/t from 253m and 3m at 19.39g/t Au from 258m;
  • 23.97m at 2.54g/t Au from 162.03m down-hole (25YMD002), including 5.38m at 10.62g/t from 170.52m;
  • 35.76m at 2.14g/t Au from 104.27m down-hole (25YMD001), including 13.46m at 5.28g/t from 111.4m;
  • 4m at 15.48g/t Au from 46m (YMRC077); and
  • 30m at 3.86g/t Au from 64m (YMRC069).

“The exceptional drill results we have been able to generate over the past year, culminating in the high-grade assays announced just before Christmas, demonstrate the significant potential of the Yundamindra ground,” Barton said.

“Combined with the significant historical results and opportunities at the Kookynie Project, with both projects substantially underexplored and unexplored, provide a compelling backdrop and rationale for the acquisition.

“Having started drilling again at Yundamindra immediately in early January following a short break, and further work planned at Kookynie, we look forward to rapidly advancing our exploration efforts and delivering further strong results for Arika shareholders.”

Yundamindra is surrounded by 15Moz of gold production at the majors owned Sunrise Dam and Wallaby mines but has seen little modern exploration – despite it producing 45,000oz at a whopping 19.3g/t Au before 1970.

Results from Yundamindra’s Pennyweight Point prospect have been outstanding, but there is enormous potential too at the Landed at Last prospect, where drilling has hit 10m at 9.99g/t Au.

Over at Kookynie, which sits 150km north of Kalgoorlie, the historical Cosmopolitan gold mine produced 331,000oz at 15g/t Au between 1895 and 1922, but Arika has been drilling shallow mineralisation on granted mining leases that shows the old timers left behind plenty of cream.

The acquisition, which is subject to a binding term sheet, is expected to be completed in the weeks following the expected shareholder approval at a general meeting of Arika shareholders on March 30.