Scorpion Minerals Secures Majority Stake In Jungar Flats Gold Project

Scorpion Minerals (ASX:SCN) has finalized a binding agreement with E79 Gold Mines to acquire a majority interest in the Jungar Flats gold project, located in Western Australia’s Murchison region. The deal strengthens Scorpion’s position in the area, expanding its landholding to 1,600 square kilometers, directly adjacent to the company’s 100%-owned Pharos project.

The acquisition marks a strategic move for Scorpion, further cementing its presence in one of Australia’s most promising gold exploration regions. Notably, Scorpion’s Pharos project made headlines last year after the discovery of significant gold specimens at the Olivers Patch prospect, located near historical shallow gold workings.

Scorpion CEO Michael Fotios hailed the agreement, emphasizing its importance to the company’s growth and regional positioning. “We are delighted to have executed this strategic agreement with E79, making Scorpion the largest landholder along the highly prospective Big Bell–Dalgaranga shear corridor in the Murchison,” Fotios said. “This corridor is a key gold exploration area, and we are excited to expand our footprint here.”

As the Murchison region continues to garner attention for its exciting gold discoveries by neighboring companies such as Spartan Resources (ASX:SPR) and Caprice Resources (ASX:CRS), Scorpion is poised to accelerate its exploration efforts. Fotios outlined the company’s plans to ramp up drilling activities, which have already garnered significant support from both existing shareholders and new investors.

“We’ve secured commitments for a $1.5 million capital raise, which will fund upcoming drilling campaigns at Pharos and cover our obligations to E79 under the Heads of Agreement (HOA),” Fotios explained. “With drilling contractors already in place, we aim to mobilize rigs by the end of February and begin drilling shortly thereafter. As gold prices strengthen, we expect a steady flow of news from our increasing exploration activities in the months ahead.”

Scorpion’s historical exploration in the Murchison region has yielded promising results, particularly at the Middle Bore prospect. Wide-spaced shallow RAB drilling has returned notable results, including 18 meters at 1.49g/t Au from 18 meters and 6 meters at 1.59g/t Au from 26 meters. Deeper diamond drilling has also shown positive signs, with a 6-meter intersection of 1.43g/t gold from 148 meters, including 2 meters at 3.19g/t gold from 151 meters.

The company plans to begin a reverse circulation drilling program at the end of February, targeting high-grade gold areas identified through historical drilling. These targets include impressive intercepts such as 12 meters at 7.40g/t Au from 44 meters at Lantern, and 7 meters at 8.33g/t Au from just 4 meters at Lantern.

The terms of the agreement require Scorpion to invest $1.5 million over the next three years to earn a 51% stake in the project. Additionally, Scorpion has the option to increase its stake to 70% by investing an additional $1.5 million within five years. The overall expenditure commitment under the deal amounts to $3 million over five years, alongside a $100,000 cash payment and expenditure milestones.

In tandem with the acquisition, Scorpion has raised $1.5 million through a placement of 75 million shares priced at 2 cents per share, which represents a 33% premium over the last traded price. This placement also includes a drill-for-equity component, with $200,000 worth of drilling services covered under the same terms. Proceeds from the placement will support Scorpion’s exploration efforts at both Jungar Flats and Pharos in the coming months.