We've entered into a binding agreement to acquire High Grade Holdings (HGH), the owner of the operating Fiddlers Creek underground gold and silver mine and the Wedderburn Gold Processing Mill, both close to our existing Victorian projects. Completion is still subject to conditions, including our shareholder approval, so this isn't done yet.

If completion goes ahead, we'd move from explorer to producer. Fiddlers Creek gives us high-grade current production, and Wedderburn gives us our own mill, one of only six in Victoria, with spare capacity and an existing offtake for its gold, silver and base metals concentrate. Together with our Irvine and Comstock projects, the combined portfolio would hold around 455koz of Inferred JORC Mineral Resources at 2.27g/t Au.

The base price is $8.9 million: $2.5 million cash and $6.4 million in our shares at $0.12 each, plus reimbursement of $0.5 million in rehabilitation bonds. Up to a further $2.0 million could become payable over three years if HGH hits specific production and project milestones after completion, but these are contractual triggers, not forecasts or guidance from us.

To fund this, we've secured commitment letters for a $5.65 million placement at $0.12 per share, backed by our major shareholders, and we'll offer all eligible shareholders the same $0.12 price through a Share Purchase Plan open for about two weeks. HGH will also get to nominate one director to our board.

We're genuinely pleased with this deal, but it depends on due diligence, shareholder approval and other conditions being satisfied, so timing and outcome aren't guaranteed.

If you have questions about this announcement, we'd welcome you raising them through the question box on this page.