BPM acquires new WA Gold project

Our micro cap exploration Investment BPM Minerals (ASX: BPM) just announced the acquisition of an option to acquire a new gold project in WA.

BPM will hold an option to acquire ~630km^2 of ground ~150km east of Kalgoorlie.

The project is <100km away from two $2.8BN Ramelius Resources assets.

AND it sits on similar geology to the >8M ounces Tropicana gold deposit owned in a joint venture between $3.3BN Regis Resources and $36BN AngloGold.

Next on the project BPM expected to complete heritage agreements with native title holders ahead of drilling which BPM expects to start in Q3-2025.

What we like about BPM’s new project:

As mentioned above, BPM’s new project sits on similar ground to the Tropicana deposit first discovered in 2004.

Immediately after that, the owners of Tropicana went on a regional exploration binge and found gold on this ground in 2006.

Instead of focusing its efforts on new discoveries, the Joint Venture switched to near-deposit exploration and all of this regional ground was left alone for a while.

The positive with all of that is BPM gets to build on all of the data that the old owners left behind.

BPM can follow up all of those targets previously identified - the one that caught our attention the most was “Beachcomber” where there have been some pretty good drill hits:

Here is core from that 9.7m at 4.5g/t gold hit from Beachcomber (note the visible gold that was being logged - VG):

Another reason we like BPM’s new project is because of its proximity to gold processing mills.

There are multiple operating mines within a 200km radius of the project which means if BPM is able to make a new discovery, it would have inherent value to the owners of those mills.

The positive from that is that there will be a fundamental valuation backstop on the discovery guided by what those mill owners are willing to pay for the resources in the ground.

Alternatively, BPM also gets multiple picks of mill owners it could negotiate toll-milling deals with.

At the moment though, BPM will need to make a discovery first. At this stage the company has no resources so talks of production are more speculative than anything else.

What is BPM paying for the project?

BPM is paying $120K cash for the option which, IF exercised gives BPM the new assets.

BPM will have 12 months to exercise the options.

Once exercised, BPM will need to pay a further:

• $30K cash.
• 13,340,000 BPM shares (~15% of BPM’s outstanding shares on issue).
• 7,000,000 performance rights - (50% convert if BPM define a resource of 50k Oz at 1.5g/t gold, 50% convert if BPM define a 250k Oz at 1g/t gold within 48 months).
• A 1.5% gross smelter royalty over the project.

Basically BPM would be paying ~$150K in cash all up and issuing the vendors ~15% of the company’s total current shares on issue (before the performance shares are considered).

Overall, we like that BPM isn’t really paying much cash for the project given BPM’s market cap is relatively low and cash is hard to raise for junior explorers at the moment.

What’s next for BPM?

Deal completion 🔄

Next we want to see BPM finalise heritage protection agreements and have the exploration licenses granted.

After that we want to see BPM prepare for an initial RC drill program (which the company is saying will be in Q3-2025.

Ultimately, we want to see BPM exercise the option to acquire and take control of the project.