Congratulations to Labyrinth Resources Limited (ASX: LRL) on signing an option agreement to acquire the remaining 49% of the Comet Vale Gold Project, and a binding share sale agreement to acquire the Vivien Gold Project.

Labyrinth has been granted a 12-month option to acquire the remaining 49% interest in Comet Vale for $3m in cash. The high-grade Comet Vale gold project is located south of Menzies and has a Mineral Resource estimate of 96koz at 4.8g/t.

Labyrinth has also entered into an agreement with Distilled Analytics Pty Ltd to acquire the Vivien Gold Project. Vivien is a high-grade, underground gold project located near Leinster, and 6km away from Gold Fields’ Agnew gold mine. Ramelius Resources was the previous operator of Vivien which produced 1.5Mt at 5.68g/t for 260koz of gold between 2015 to 2023. The vendors of Distilled include Alex Hewlett and Kelvin Flynn, who were previously involved in driving value creation at Red Dirt Metals, Spectrum Metals, Mineral Resources, Silver Lake Resources and Wildcat Resources.

Labyrinth has received firm commitments to raise $2.0m through a two-tranche placement. Existing shareholders will have the opportunity to participate in a $2.0m entitlement offer.

The transactions are consistent with Labyrinth’s strategy to consolidate and grow underexplored high grade gold mines across the Menzies, Leonora and Leinster corridor that are close to infrastructure.

Sternship is pleased to have acted as financial advisor to Labyrinth Resources on the transactions and equity raising. Lavan acted as legal advisor.