PEAK ASSET: ARVO WRAP 20 February: ASX up 1.8pc for week | Iron ore set for longest losing run since 2022 | Recharge Metals Acquires Sunset Well Gold Project, Raises $3.75m to Fund Drilling |

Recharge Metals Acquires Sunset Well Gold Project, Raises $3.75m to Fund Drilling

• REC buys Sunset Well; Prospero holds ~94,500 oz at 1.0 g/t.

• Prospero open; 10km shear; near-surface highs.

• Funding: $3.75m; $2m rights issue; drilling soon.

Recharge Metals (ASX: REC) has entered into a binding agreement to acquire 100% of the Sunset Well gold project in the Leonora district of Western Australia.

The project hosts the Prospero deposit, which contains a shallow Inferred Mineral Resource of 2.87 million tonnes at 1.0 grams per tonne gold for 94,500 ounces of gold.

Prospero has not been drilled since the 1990s and remains open along strike and at depth, while the broader Prospero Shear Zone extends for 10 kilometres and contains numerous historical drill results yet to be followed up.

Only three holes have been drilled below 100 metres vertical depth, leaving deeper extensions largely untested.

High-grade, near-surface intercepts demonstrate continuity and scale potential, including 36m at 2.73 g/t from 32m, including 16m at 5.39g/t from 36m.

Priority Targets Identified

Recharge has identified priority targets along both the Prospero Shear Zone and the Flanders Shear Zone, which extends for 8km.

Historical intercepts along the Prospero trend include 27m at 1.12g/t gold from 8m, including 8m at 2.52g/t.

Along the Flanders trend, results include 8m at 3.12g/t gold from 8m and 5m at 2.64 g/t from 22m to end of hole.

The project tenement package comprises ten granted prospecting licences, 15 prospecting licence applications, and four exploration licence applications covering 181 square kilometres.

Sunset Well is located approximately 10km east of Leonora and within 100km of seven operating gold processing plants, and is accessible via the Goldfields Highway and Leonora-Laverton Road.

Capital Management

The company has secured firm commitments for a $3.75 million placement to fund drilling and working capital and will launch a $2m pro-rata rights issue to enable existing shareholders to participate in the capital raising at a rate of four new shares for every five held.

Management said drilling preparations are well advanced, positioning the company to commence promptly following transaction completion and receipt of remaining approvals.

Recharge has also bolstered its board and technical capability with the addition of directors Samuel Ekins and Ben Jones and technical advisor Brett Keillor to support accelerated exploration and growth.

“Recharge’s acquisition of the Sunset Well Gold Project provides investors with immediate exposure to the strong gold environment from a project with an established resource base, and significant leverage to exploration upside through its clear growth potential and near-term newsflow,” managing director Felicity Repacholi said.

“With a strengthened team and a funded exploration program in place, we look forward to commencing drilling at Sunset Well shortly and updating shareholders with consistent technical progress.”

Source: SmallCaps