Lancaster Resources, a Canadian company, finalized the acquisition of the Lake Cargelligo gold project in New South Wales, Australia, effective June 30, 2025. The transaction was executed through Lancaster Gold Australia, a wholly owned subsidiary, for a total of C$210,000, including C$10,000 in cash and 10 million Lancaster common shares valued at C$0.02 each. The shares are subject to a 24-month resale restriction. The agreement also includes a 2% net smelter return royalty with buy-back options and potential milestone payments up to C$3.68 million.

The project spans over 28,768ha in the renowned Cobar mining district, known for its rich gold and silver deposits.

Andrew Watson, Lancaster’s president and CEO, stated: “This acquisition, together with the formation of Lancaster Gold Australia, marks a key milestone in our strategy to build a strong precious metals portfolio.” He added: “The Lake Cargelligo gold project offers exceptional exploration upside with significant historical high-grade results, and we are excited to begin systematic exploration to unlock its full potential for our shareholders.”

Spanning 28,768 hectares in the Cobar mining district, known for its gold and silver deposits, the project features over 25 kilometers of prospective strike and three key target zones. Located 60 kilometers from the operational Mineral Hill Mine, it presents significant exploration potential. Lancaster plans a comprehensive 2025 exploration program, incorporating modern geophysics, geochemical sampling, and drilling, as the area has not yet been explored with these advanced methods.

In a strategic shift, Lancaster terminated its option agreement for the Alkali Flats lithium project in New Mexico, U.S., earlier in June 2025, due to unfavorable market conditions. This decision reflects the company’s focus on projects with stronger potential for shareholder value. Additionally, in April 2024, Lancaster expanded its gold portfolio by acquiring the Piney Lake Gold Property in Saskatchewan, Canada, covering over 2,267 hectares near other significant mining operations.

The Lake Cargelligo acquisition strengthens Lancaster’s position in the precious metals sector, supporting regional economic growth and advancing exploration in a high-potential mining district.