08:29 AM EDT, 07/15/2024 (MT Newswires) -- Rua Gold ( NZAUF ) said Monday that it signed a definitive agreement to acquire Reefton Resources, owner of the Reefton assets in New Zealand, from Australia-listed Siren Gold for A$20 million in cash and shares.

Rua Gold ( NZAUF ) said the transaction will expand its landholdings in New Zealand's South Island to 120,000 hectares.

Siren will receive A$2 million in cash and about 84 million shares of Rua Gold ( NZAUF ).

Upon completion, Siren will own about 30% of Rua Gold ( NZAUF ) and Siren Chairman Brian Rodan will join the Rua Gold ( NZAUF ) board.

"The company has focused on the Reefton Goldfield and in four years combined rapid geochemical sampling, ultra-detailed geophysical surveying and mapping to highlight the potential of exploring old workings at depth as well as several new Greenfield prospects," Rua Gold ( NZAUF ) COO Simon Henderson said. "It is very exciting to combine Rua Gold ( NZAUF ) and Siren data sets, combined knowledge, and have the whole orogenic district to explore."

The deal is expected to close in the fourth quarter.

Rua Gold's ( NZAUF ) share price fell 2.27% last Friday to $0.215 on the CSE.