Orbminco Limited (ASX: OB1) has entered a binding agreement to acquire 100% of the advanced Majestic North Gold Project in Western Australia’s Eastern Goldfields from Fortify Mining Pty Ltd. This acquisition marks a significant step in Orbminco’s strategy to build a portfolio of high-quality assets in Tier-1 jurisdictions.
The Majestic North Project boasts an existing shallow JORC (2012) compliant resource of 39,700oz Au at 1.61 g/t, with 25,300 ounces classified as Indicated and 14,400 ounces as Inferred. The resource is predominantly hosted within shallow, supergene-enriched mineralization, offering potential advantages for future development. Historical drilling has been largely restricted to the top 40 meters from surface, presenting a compelling opportunity to target extensions of the known mineralization and discover underlying primary gold sources within favorable geological structures.
To support the acquisition and planned exploration activities, Orbminco has secured commitments for a share placement to raise A$0.880 million at an issue price of A$0.001 per share. Funds raised will be allocated to a focused infill and verification drilling program at Majestic North, commencement of baseline environmental studies and mining approval documentation, exploration at the Bronze Fox Project, and general working capital.
Orbminco’s immediate focus will be on completing due diligence, including a resource drilling program, and planning follow-up exploration programs targeting resource expansion and new discoveries. Following a six-month exclusivity period, Orbminco has the right to acquire 100% of Fortify’s issued shares for A$1 million in cash, A$2.4 million in OB1 shares, and a production payment of A$75 per ounce of gold produced.
Post-transaction, Orbminco’s issued share capital will increase substantially. The Board intends to seek shareholder approval to undertake a share consolidation on a 1-for-20 basis to reduce the number of shares on issue to a more manageable level and better position the Company for future growth.
