RUA Life Sciences Plc, a bioengineering company that develops synthetic polymers, previously announced its aggressive plans to acquire gold mining and exploration assets in New Zealand that belonged to Siren Gold. The purchase, made through RUA’s wholly-owned subsidiary, RUA Gold, would significantly enhance the company’s portfolio and position it as the dominant player in the gold-rich Reefton district.
This strategic acquisition comprises an extensive tenement package that spans four key assets; namely, Alexander River, Big River, Reefton South and Lyell. All of these assets are located in the prospective Reefton Goldfield, which boasts a history of highly productive mining activity and a proven track record of yielding significantly high-grade gold.
RUA Gold aims to advance the development of these assets with comprehensive exploration activities that include drilling and rapid data collection. The goal is to leverage the potential of these gold-filled lands, marking a promising new chapter in RUA Gold’s metallic minerals exploration journey.
Commenting on the upcoming acquisition, CEO of RUA Life Sciences Plc, Andrew Monk, underlined the gravity of the deal. RUA Gold’s acquisition of Siren Gold’s Reefton assets is a defining moment for our company. This significantly enhances our standing in the global mining and exploration circuit, specifically positioning us as the leading explorer in the coveted Reefton Goldfield, he said.
The agreement further includes RUA Gold issuing an annual report for Siren Gold’s shareholders for a four-year period and also providing Siren Gold Limited with future production royalties. The amount of this royalty, as part of the deal, will be based on the future revenues generated from the Alexander River and Big River assets.
Discussing the royalty deal, Mr. Andrew Monk added, As well as expanding our asset portfolio, we are pleased to be able to offer Siren Gold a profitable exit in the form of future production royalties. This exemplifies our commitment not only to positive business development but also to nurturing mutually beneficial, long-term relationships within the industry.”
This landmark deal further underlines RUA Gold’s intent to become the leading explorer in the Reefton Goldfield. The company’s venture into metal asset ownership and operation also aligns with its broader strategy of growing and diversifying its business vertically. It has embarked on a journey that is envisaged to significantly enhance shareholder value over both the short and long terms.
As part of their immediate strategy, RUA Gold plans to initiate a geological mapping and surface sampling program across all newly-acquired assets. This will help in outlining initial targets for the upcoming drilling program, positioning RUA Gold on the fast track to realizing the immense monetary potential of these high-grade gold assets.
In summary, RUA Gold’s acquisition of Siren Gold’s Reefton assets furthers the company’s exploration and growth ambitions while strengthening its foothold in New Zealand’s prosperous mining landscape. By effectively leveraging these extensive, gold-rich assets, the company sets itself on an upward trajectory towards success and profitability in the mining and exploration sector.
