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(Sharecast News) - Geo Exploration said on Wednesday that it has completed the acquisition of the Gorge Project gold exploration licence in Western Australia, and was preparing to start modern exploration work, while continuing discussions over a potential farm-out of its offshore Namibian petroleum licence.
The AIM-traded explorer said all final administrative steps relating to the acquisition of Exploration Licence E08/3737 have now been completed, including ministerial consent and payment of the AUD 0.1m (0.05m) cash consideration.
It also issued 48,130,000 consideration shares at 0.4p per share, held in escrow with its registrar until 13 January 2027, in line with the terms announced in October last year.
In connection with the transaction, Geo issued a further 18,472,037 ordinary shares to Callum Baxter in settlement of a consultancy fee valued at AUD 50,000, priced at 0.135p per share, being the closing share price on 12 January.
The company said Baxter provided material technical and commercial assistance in identifying and progressing the Gorge Project through to completion.
It said the Gorge Project covers 81 square kilometres and is located around 110 kilometres west of Paraburdoo within Western Australia's Capricorn Orogen.
Geo said historic exploration across the licence area had identified gold mineralisation over approximately five kilometres of strike, including rock chip results of up to 134 grams per tonne of gold and soil samples returning values of up to 233 grams per tonne.
Multiple near-surface gold nuggets, ranging from less than two grams to more than 100 grams, had also been recovered, supporting the potential presence of a primary bedrock gold source.
With the acquisition complete, the company said it was planning systematic exploration programmes using modern techniques to refine geological understanding and prioritise targets ahead of initial drilling, subject to the completion of heritage and access requirements.
Separately, Geo updated the market on its 78% interest in Petroleum Exploration Licence 0094 in the Walvis Basin offshore Namibia, which covers 5,798 square kilometres in water depths of between 450 and 1,550 metres.
The firm reiterated that it was pursuing a farm-out partner to fund and lead further exploration, noting that several new parties have accessed the data room since late 2024.
Geo said increased regional activity, including by Chevron, had reinvigorated interest in the licence, following a previously reported uplift in gross mean prospective resources to around 4.31 billion barrels.
"With the final administrative steps now completed, we are pleased to be in a position to begin exploration at the Gorge Project," said chief executive Omar Ahmad.
"The historic grades, widespread surface gold occurrences and recovery of multiple gold nuggets highlight the prospectivity of the licence and support further systematic exploration and future drilling.
"In parallel, we are encouraged by the level of interest in our Namibian licence and determined to secure an accretive farm-out agreement for shareholders."
Geo said application would be made for admission of the new ordinary shares to trading on AIM, with dealings expected to commence on or around 19 January.
Following admission, the company said it would have 5,663,107,159 ordinary shares in issue.
At 1332 GMT, shares in Geo Exploration were up 9.18% at 0.14p.
Reporting by Josh White for Sharecast.com.