Reed Resources Ltd
(ASX:RDR) has bought the Meekatharra gold project in Western Australia for $28 million.
Reed’s wholly owned subsidiary GMK Exploration Pty Ltd has secured the acquisition from Mercator Gold Australia Pty Ltd, currently under administration.
Reed says the latest transaction positions the company to become a mid-tier gold producer, as well as forming part of the Reed’s strategy to possibly spin-off of its gold assets into a new company.
Reed managing director Christopher Reed says the company is currently looking at a number of financing options to fund the purchase and has already spoken to various parties about the provision of equity and debt
In the year to 30 June 2010, Reed Resources reported a net loss of $2.7 million.
