Shares of Oracle Power PLC (LON: ORCP) today surged 23.3% after the company announced that it has acquired two highly prospective gold projects in Western Australia.
The first project known as The Northern Zone Project is located 25km east of the major gold mining centre of Kalgoorlie, the home of the ‘Super Pit' mine, the second-largest gold mine in Australia.
The second project called the Jundee East Project is located about 9km east of Northern Star's Jundee Gold Mine, also one of Australia's largest gold mines.
The potential new buried greenstone belt identified from gravity modelling, highlighting prospective new target areas for gold exploration at Jundee East very close to one of Australia's Tier 1 gold mines.
The company will pay £90,000 in cash and issue 43 million shares with warrants at 1.1p in order to complete the transaction.
Naheed Memon, CEO of Oracle, commented: “To secure a deal on these assets in Western Australia is a very significant and exciting new development for Oracle. The Northern Zone Project is essentially drill-ready and the Jundee East Project has the potential to discover gold mineralisation in a newly identified greenstone belt that has very similar geophysical signatures to the nearby Jundee Gold Mine.”
Oracle Power has a huge coal mining and energy project known as the Thar Block VI Project in the Thar desert in the south-east of the Sindh province of Pakistan. The gold mining project will be its second major undertaking.
Oracle Power share price
Oracle Power shares today surged 23.3% to trade at 0.740p having rallied from Friday’s closing price of 0.60p before giving up most of their gains.