West Australian gold explorer BMG Resources Limited (ASX: BMG) The Directors present their report together with the consolidated financial report for the half year ended 31 December 2020
During the six months to 31 December 2020, BMG was focused on advancing its portfolio of highly prospective Western Australian gold projects after completing the 100% acquisition of Oracle Mining Limited (Oracle) and its subsidiaries.
The completion of the transaction followed the initial announcement of the transaction in August 2020 (refer ASX announcement on 17 August 2020 “Transformational Acquisition: BMG to Acquire Three Outstanding Western Australian Gold Projects”).
The three gold projects acquired are the Abercromby and Invincible gold projects, located in the Wiluna district and the Central Pilbara regions of Western Australia respectively, and the South Boddington Project (under application) located along strike from Newmont’s (NYSE: NEM) giant Boddington deposit (+40Moz) in the same greenstone belt.
The Oracle Acquisition was subject to requisite approval from BMG shareholders at a General Meeting, held on 5 October 2020, and other conditions precedent including a 10:1 share capital consolidation and the completion of a $4 million capital raising via a $3m Placement to professional and sophisticated investors and a $1m Share Purchase Plan for BMG shareholders. Consideration for the Oracle Acquisition was the issue of 89,843,117 fully paid ordinary shares in the company and 13,333,333 performance shares.
Following completion of the acquisition, BMG launched exploration initiatives at Abercromby and Invincible. A 5,000m reverse circulation (RC) and diamond drilling program was planned for Abercromby with 2,880m drilled in Phase 1 of the program during the reporting period, while at Invincible, an ultra-detailed high resolution aeromagnetic and radiometric survey of project area was undertaken.