Dampier Gold Managing Director, Annie Guo, has put her hand in her own pocket in support of the company’s ongoing legal dispute with fellow ASX-listed explorer, Vango Mining.
Under the terms of an agreement between Ms Guo and Dampier Gold, Ms Guo’s private entity, Auracle Group will make up to $1 million available to Dampier to pay for its legal costs. In return, Auracle will receive a $300,000 share placement in Dampier and the balance of $700,000 will be provided as a loan to the company.
Dampier’s litigation with Vango has arisen through a dispute over an earn-in agreement between Dampier and Vango relating to Vango’s K2 gold project. The K2 deposit is located in Western Australia’s Northern Goldfield’s, 35km north-east of the Plutonic gold mine and forms part of Vango’s “PHB Corridor”. According to Vango’s 2020 annual report, the K2 deposit boasts a high-grade resource of 374,000 tonnes at 8.9 g/t gold, containing 107,000 ounces of the precious metal.
With the funding in place, Dampier is in a strong position to pursue Supreme Court litigation to judgement if the matter is not resolved at the upcoming mediation.
On behalf of the Dampier board and Dampier shareholders, I wish to thank Auracle for providing these funds. The provision of these funds enables the Company to proceed with its commitment to utilise shareholders’ funds on its exploration focus. The board is confident of the Company’s future and its ability to continue to add value to the Company’s strategic exploration portfolio, in the best interests of all shareholders.
Dampier Gold Executive Chairman, Malcolm Carson
Ms Guo’s funding of Dampier’s action in the Supreme Court preserves the company’s own funds at a time when it has been enjoying some success with the drill bit west of Kalgoorlie on the well-known Zuleika shear.