Eastern Goldfields Ltd
(ASX:EGS) has signed a deal to become a cornerstone shareholder in Windward Resources Ltd
(ASX:WIN).
This will be effected via a $2.16 million share placement, which comprises 18 million shares at 12 cents per new share. However, this is subject to Windward shareholder approval. Afterwards, Eastern Goldfields will have a 14.3% stake in Windward.
Windward will also issue Eastern Goldfields with options in consideration for its funding support.
The gold mining company says this deal will provide it with exposure to Windward’s highly prospective Fraser Range nickel portfolio, and that the nickel sector is well-placed for a strong recovery over the next 12-18 months.
Eastern Goldfields reported a net loss of $4.8 million at 31 December 2015.
