Kingston Resources and WCB Resources merger ratified
Published on: | by Trevor Hoey
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Kingston Resources (ASX:KSN) has confirmed that the proposed merger between it and TSX listed WCB Resources received overwhelming shareholder support and as such the merger will be formalised in Canada today.
The group will be focused on gold and lithium development and exploration in Australia and Papua New Guinea.
The merger combines a joint-venture interest in the advanced Misima gold project in Papua New Guinea. This has previous long-term historical production of over 3.7 million ounces of gold, and drilling from outside the current resource has yielded high-grade results.
The combined group will also have an extensive Northern Territory lithium exploration portfolio covering four key project areas. The highlight of the maiden drilling program at Bynoe was a return of 12 metres grading 1.43 per cent lithium dioxide from 121 metres, including 9 metres grading 1.69 per cent.
Given the early nature of the merger, interested investors should seek professional financial advice if considering this stock for their portfolio.
The other key asset is the emerging Livingstone gold project in Western Australia which currently has a small historical inferred gold resource of 49,000 ounces and a large 25 square kilometre prospective geochemical target. The region has a history of delivering high grade gold from underground production.
More recently, KSN has completed drilling and the results have been compelling. These included 7 metres grading 12.59 grams per tonne gold from 35 metres and 18 metres grading 3 grams per tonne gold from 45 metres.
Previous exploration featured drilling results of 18 metres grading 7.8 grams per tonne gold and 5 metres grading 20 grams per tonne gold.
KSN has rallied since the proposed merger was announced at the start of September, and confirmation that the deal has been ratified should be well received.