Siren Gold announces agreement with RUA Gold Inc. for A$20M sale of Reefton Project

Siren Gold Limited (ASX: $SNG) has entered into a definitive agreement with Canadian listed RUA Gold Inc. (CSE:RUA) for the sale of the Reefton Project, consolidating the Reefton Goldfield. The transaction, valued at A$20 million, will create the largest gold explorer on the Reefton Goldfield in New Zealand's South Island. Siren Chairman Mr Brian Rodan will join the RUA Board upon completion of the transaction. The acquisition price is based on Reefton's current 444,000 OZ inferred Mineral Resource Estimate (MRE) and is expected to close in Q4 2024, subject to customary conditions and approvals.

Executive commentary on the agreement

Siren's Managing Director and CEO, Victor Rajasooriar, expressed that the transaction is a significant step in realizing the company's vision for the Reefton region, aiming to create a significant high-grade gold producer. He highlighted that the transaction will enable Siren to focus on the multi-million-ounce potential at Sams Creek, while RUA can continue to explore the consolidated Reefton Project. RUA CEO, Robert Eckford, emphasized that the transaction positions RUA as the largest tenement holder of the highly prospective Reefton Goldfield district, offering real synergies and setting the company for a rapid re-rating from further exploration success and resource delineation across the combined land package.

Summary of the agreement and outlook

Siren Gold's agreement with RUA Gold Inc. for the sale of the Reefton Project marks a significant development in consolidating the Reefton Goldfield, creating the largest gold explorer in the region. The transaction, valued at A$20 million, is expected to close in Q4 2024, subject to customary conditions and approvals. Post-transaction, Siren will focus on the multi-million-ounce potential at Sams Creek, while retaining a significant interest in the Reefton project through its shareholding in RUA. The company aims to fast-track resource growth at Sams Creek, while RUA can expedite gold and antimony resource growth at Reefton. The outlook for Siren includes maintaining a focus on exploration and development at Sams Creek, leveraging its substantial cash and investments post-transaction, and retaining a strategic interest in the Reefton project through its shareholding in RUA.